My husband and I took out a loan in 2014 through a credit union and used our van as collateral. They have our title. In 2015 we filed bankruptcy and included the loan on it. We did make a few payments after even though it was on our bankruptcy until the van broke down and we decided to replace it. We quit making payments sometime around September or October of 2015. We were in contact with the credit union several times about a repossession but 3 weeks ago the man said we never signed something we needed to sign (no idea what) so he was going to get our signatures and the mileage on the car and have someone pick it up. When we told him it wouldn't start, he said they didn't want it and it wasn't worth their time or money to repossess the vehicle. I asked about the title and he was short with me and said he'd let me know and it's now been 3 weeks and we won't return any of our calls. The van is just sitting in my driveway and I want it gone. They don't want it but I can't get rid of it without a title. What are my options? I just want it gone. Thanks.
The lien survives bankruptcy. Ordinarily there is no obligation on the part of a creditor to repossess collateral. However, a creditor is obligated to minimize damages. Arrange to sell the vehicle for whatever you can get, for scrap if necessary. The creditor is entitled to the proceeds. Ask (in writing) that the creditor agree to send the title to the purchaser in exchange for the proceeds. If they refuse, you may have a claim based on its commercially unreasonable conduct.
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