by t3dfish » Tue Jun 19, 2012 05:02 pm
Hello,
My car was involved in an accident that was not our fault. The car was totaled. We found out that there is a lien on the car and they will not release the title to me our to my insurance company. My wife and I have filed a bankruptcy over a year and half ago and they never came to collect the car. Do they still have the right to keep the lien on the car even though the bankruptcy was discharged? The value if the car is less then what we owed to the lien holder.
Thank you.
My car was involved in an accident that was not our fault. The car was totaled. We found out that there is a lien on the car and they will not release the title to me our to my insurance company. My wife and I have filed a bankruptcy over a year and half ago and they never came to collect the car. Do they still have the right to keep the lien on the car even though the bankruptcy was discharged? The value if the car is less then what we owed to the lien holder.
Thank you.
Posted: Wed Jun 20, 2012 04:02 am Post Subject:
It really depends upon a number of things. First and foremost, check to see whether or not the lienholder was listed as a creditor in the bankruptcy proceedings. If not, then the debt may not have been discharged. Normally, a vehicle lienholder is considered a secured creditor since the vehicle serves as collateral for the debt. In a Chapter 7 bankruptcy, a debtor has three basic choices with respect to secured creditors: they can surrender the vehicle, they can reaffirm the debt (i.e. sign another installment agreement that promises to pay for the property over a fixed period of time), or they may redeem the property (i.e. buy out the secured creditor by paying off the loan).
Posted: Sat Jun 23, 2012 12:49 am Post Subject:
"In a Chapter 7 bankruptcy, a debtor has three basic choices with respect to secured creditors: they can surrender the vehicle, they can reaffirm the debt (i.e. sign another installment agreement that promises to pay for the property over a fixed period of time), or they may redeem the property (i.e. buy out the secured creditor by paying off the loan)."
My wife and I were never given these 3 choices.
We listed the lien-holder as a creditor.
Posted: Sat Jun 23, 2012 11:11 am Post Subject:
What does your Ch 7 discharge order state? Was the creditor entitled to reclaim the property or not? Was your Ch 7 filing ever finalized?
Posted: Sat Jun 23, 2012 07:44 pm Post Subject:
The creditor was entitled to reclaim the property for a period of time. They never reclaimed it and our Ch 7 was discharged and finalized.
Posted: Sun Jun 24, 2012 03:31 am Post Subject:
Then you're probably home free. You'll have to show up to any hearing with your bankruptcy court paperwork that proves this. You'll need to petition the trial court for "summary judgment" as a matter of law by presenting the bankruptcy court record showing who, what, when, and where.
Posted: Thu Jun 28, 2012 08:52 pm Post Subject:
After checking our CH 7 papers, we listed the Lien-holder as a creditor. However, we chose to reaffirm the debt. We never received any reaffirmation agreement from the creditor and the CH 7 was discharged.
What are my options now?
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