QUESTION
What do I do if my chapter 7 bankruptcy was discharged 4 months ago but the lender hasn't picked up the car?
Asked on Jun 15th, 2016 on Bankruptcy - Colorado
More details to this question:
I have been trying to give up my car which has a lien on it and is extremely underwater. The agency will not return my calls or emails. I'm trying to figure out what to do with this vehicle. Will they repossess it and how do I get the lien off of it? It's not worth very much now.
5 ANSWERS
So it is not clear what you want. If you want to return the vehicle, call the lender and ask where you should take it to turn it in. If you wanted to keep the vehicle, you should have filed a motion to redeem the vehicle before your case was discharge. While the lender may pick up the vehicle at any time, they may decide never to bother doing this. But this decision does not mean the lender will turn over the title to you. That generous, they aren't?
Answered on Jul 18th, 2016 at 5:47 PM
2 Awards
You can't remove the lien. If the lender has a local address, drive it there and hand them the keys. Otherwise, there isn't much you can do but wait for them to come pick it up.
Answered on Jul 18th, 2016 at 5:47 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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I always suggest to my clients in this situation to drop the car off where it was purchased and leave the keys with the front desk. You will need to send a certified letter to the lender and let them know the location of the car. Typically this is the end of the problem. The debt was discharged in the bankruptcy if you did not reaffirm the loan.
Answered on Jul 18th, 2016 at 5:46 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Write them a certified letter to "immediately cease harassing me in your attempt to extort a payment on this discharged debt by removing the vehicle or sending me the title with your lien removed so I can have it towed to a junkyard." If in three weeks, they haven't take. Care of it, move the bankruptcy court for violation of the automatic stay.
Answered on Jul 18th, 2016 at 5:46 PM
Some of my clients continue driving the vehicles, knowing they will never get the title for the vehicle. If the lender is local, you can take it and drop it off at their location. Good luck!
Answered on Jul 18th, 2016 at 5:45 PM