QUESTION
What can I do if they are telling me they want $11,000 to release the lien?
Asked on Jul 14th, 2016 on Bankruptcy - California
More details to this question:
Bankruptcy was final on 12-20-15. 2002 Lexus with 140,000 miles was included along with Lincoln navigator. They took the navigator and left Lexus. I’ve been at the same address for 4 years, same job and same phone etc. for years. The car has a book value of $2500-3000. I paid $10,000 for car when I bought it, made 25 payments of $307 or $7675 in payments. I want to get rid of the car.
3 ANSWERS
Throw me a bone here! Who are they. If they are a credit union or other lender with a lien against both the Navigator and the Lexis under a doctrine called cross collateralization, you need to appreciate that unless you have a court order that releases or changes the terms of a lien, the lien rights of creditors do not get discharged in any bankruptcy unless there is a special court order providing this.
Answered on Aug 12th, 2016 at 6:54 PM
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If you want to be rid of the car, you should be able to 'surrender' it to the creditor: unless you reaffirmed the debt, it has been discharged in the BR, and the only thing the creditor can rely on for payment is the car itself. If you had a lawyer in the BR (which is always the best way), he or she should have advised you about this long ago. While your 'Statement of Intention' in the BR papers is not necessarily binding, I suggest you take a look at it and see what it says about reaffirmations on these vehicles.
Answered on Aug 12th, 2016 at 6:53 PM
The lien is gone as to you but will always exist on the car. If you keep up with payments you can keep the car. Otherwise you can surrender it. Just tell them to pick it up.
Answered on Aug 12th, 2016 at 11:11 AM