Bankruptcy, vehicle and the creditor who doesn't come and get it!?

by **jorel** » Wed Oct 26, 2011 4:36 pm

Chapter 7 discharged 2/2010. Secured loan with vehicle. Creditor has not come and got it or even contacted me! Can I apply for a clear title under maybe abandonment laws or something like that?

by **seme22** » Wed Oct 26, 2011 4:41 pm

Contact your attorney. Your attorney can make an offer to "redeem" the vehicle for a nominal sum (for example, $10). Then the vehicle will be yours free and clear and you are free to have it towed away by (for example) one of those charities that will accept vehicle donations and come and tow it away.

by **melville** » Wed Oct 26, 2011 4:46 pm

The creditor should have been notified of the bankruptcy and your lawyer should have advised them that the debt was going to be reaffirmed or surrendered. Have you been paying it? If it was reaffirmed and you have they wouldn't need to contact you. Or maybe they weren't notified? I doubt you'll be able to get a clean title just like that. When you file chapter 7 with a car loan you can either keep the vehicle and the debt, or surrender it and not worry about the residual balance, not keep the car and lose the debt.

by **pete** » Wed Oct 26, 2011 4:48 pm

no you cant get an abandonment title. you are already the owner, and the lien stays.

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