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The lender is not required to take possession of the vehicle and can let the lien stand until the debt is paid. In addition, the lender can sue the borrower/debtor for the entire balance of the loan plus applicable legal fees, etc. rather than go through the reposssession and selling of the vehicle. As long as the lender is a lien holder the vehicle cannot be traded, sold nor transferred to another party.

2006-09-06 22:35:43
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Related Questions

Can your vehicle be repossessed after you file Chapter 7 bankruptcy?

No. But they can ask to be excluded from the bankruptcy. Usually a deal can be made with the lender to keep a vehicle. If it is covered by the exemption and the borrower lives up to the contract agreement.


How do I get a title to a vehicle that was secured by a loan that was not reaffirmed after bankruptcy?

You don't. You voluntarily surrender the vehicle to the lender, or at least offer the ooprtunity for the lender to secure it. If the lender declines, you get this in writing and ask the lender to surrender the title to you. On the outside chance this occurs, you take the title to the DMV and change the title.


How do you get a car title after bankruptcy 1 year ago?

If there was a secured loan and you reaffirmed the debt in your chapter 7 and you have paid off the loan, you should get the title from the lender. If you surrendered the car to the lender in your chapter 7, your balance was discharged as an unsecured loan and you have not owned the car since you surrendered it.


Bankruptcy surrender Lender will not pick up vehicle?

Take your hands out of the situation and let your attorney handle it.


Can you file bankruptcy if you own a car?

Yes, how the bankruptcy will affect the ownership of the vehicle depends on the state vehicle exemption amount and if the lender will agree to reaffirm the loan. If there is no loan/lien pertaining to the vehicle then only the state exemption will apply.


How long do they have to reposes your vehicle when you file for bankruptcy?

If your Statement of Intention (in a chapter 7) says you intend to surrender the vehicle, you should offer the keys or the vehicle with the keys to the lender or tell the lender when and where to pick the vehicle up. You may want to send a certified return receipt letter to the lender with this same information. Your state laws may give the creditor a definite period of time to respond or the claim will be deemed abandoned. Consult your bankruptcy lawyer.


Can you get your car back if you file a chapter 7 bankruptcy before it is auctioned off?

If the lender is willing to reaffirm the loan with the borrower then the vehicle can be returned. A vehicle is a secured debt and is not subject to chapter 7 bankruptcy laws.


When arranging payments on a vehicle that you surrendered who sets the amount on what you pay monthly?

The same one who set the payments when you got the loan, the LENDER.


Does a lien still show on the title of a vehicle if you file bankruptcy?

Yes, liens survive a BK unless the debtor files an adversary proceeding to have it removed (because the lien impedes an exemption). In a BK, the note from the vehicle sale is discharged- meaning that you cant be forced to pay your car loan. However, the lien survives- so if you dont pay, the lender has the right to re-posses the vehicle. If the lender does go ahead and reposses, the lender cannot go after you for the difference between the loan amount and the amount the vehicle sold for at auction.


How do you get your vehicle back from a creditor after filing bankruptcy papers with the court?

All property in BK that is not exempted by state and/or Federal law has to be surrendered to the trustee. A vehicle is secured property and will be returned to the lender, or sold depending upon the circumstances. A car which is covered by exemptions, but is in default for payment, is usually returned to the lender. In some cases the lender will allow the debtor to reaffirm the loan and establish terms to catch up on missed payments .Property is not automatically returned to the person who filed BK.


You are financing a vehicle but you can no longer afford payments what can you do?

Talk to the lender, or you can file Chapter 13 Bankruptcy to lower the payments where you can afford them.


In a bankruptcy what does it mean if a creditor filed a motion to release because you got behind on your mortgage?

The lender is requesting to be removed from the bankruptcy procedure. If the request is granted the lender can foreclose on the property or take whatever action is allowed under the laws of the state where the property is located.


What do you do if you stopped making payments on a car loan after filing chapter 7 bankruptcy and the creditor has refused to repossess the vehicle but will not release the lien?

A vehicle is a secured loan and cannot be discharged in bankruptcy. If a reaffirmation agreement between the lender and the borrower is not possible the vehicle is usually repossessed. However, the lender does not have a legal obligation to recover the vehicle. The lien will not be released until the loan is paid or settled to the satisfaction of the lender. Under new bankruptcy laws, the lender is entitled to collect the full amount of the loan plus any applicable legal fees and interest. This generally means that the lender will file a lawsuit to obtain a judgment which can be used as a wage garnishment, bank account levy or other method as allowed by the state laws to collect money owed.


If your car is repossessed in Illinois and the lender wants full payment can you file for bankruptcy within a certain amount of days so that your able to keep your car?

Bankruptcy does not prevent a vehicle from being repossessed. If the debtor/borrower wants to keep the vehicle they must reaffirm the loan with the lender. Furthermore, new bankruptcy laws require the borrower to repay the entire amount of the loan and applicable fees rather than the discrepancy between the loan and the amount recovered in the sale of the vehicle.


How do you get a title from the bank if your you have been discharged from a chapter 11 but you can't get the title from the bank?

Real property such as a vehicle or house is not dischargeable in bankruptcy. The debt must be reaffirmed, paid or satisfied or the property forfeited to the lender. That being the case, the person would not be entitled to a clear vehicle or land title from the lender simply because the debt was included in bankruptcy.


What happens to a vehicle when the title is held by two persons who are not married and one person files bankruptcy?

Vehicles are considered secured property and the debt is not dischargeable in bankruptcy action. The situation cited would not place the vehicle in jeopardy depending upon the way the vehicle title is worded and the exemption status. In such a case it is highly unlikely the bankruptcy trustee would order the vehicle sold. That being the case any decision concerning the vehicle would belong to the lender not the bankruptcy court.


Will you be notified if the lienholder is obtaining a court order to repossess your vehicle?

Yes. You will be served with an order to appear. On your court date, you will be ordered to surrender the vehicle and the lender will be given a replevin by the court. This is in essenece an order by the court for you to return the vehicle to the lender. When the replevin is served, you will surrender the vehicle or you will be taken to jail and remain there at least until the vehicle is surrendered, perhaps longer on felony charges.


The subprime lender wrote off late fees after loan was paid the vehicle in still in our possession are we still able get the lien removed?

You will need to get a written lien release from the lender.


When do you have to be out of a house after bankruptcy?

Assuming you owned the house and you are the bankrupt debtor, it varies from state to state and lender to lender. If you surrendered the house, you should turn the keys over to the lender's attorney. Even if you do that, you may find yourself still getting the real estate tax bills, water and sewer bills, etc. If the lender or someone else has not purchased the house at auction, you may be able to stay for quite a while. Talk to your bankruptcy lawyer about it.


If you are a cosigner on a vehicle and the other person gets the vehicle repossessed then files for bancruptcy what happens to the cosigner?

you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.


Which sort of bankruptcy should one use to retrieve a vehicle in Florida that was repossessed yesterday?

A vehicle is a secured debt, therefore bankruptcy action would not reverse the repossession. Bankruptcy only places a temporary halt to repossession or foreclosure of secured property. The only option available to the borrower to recover a repossessed vehicle is to reaffirm the lending agreement or make some other type of settlement with the lender.


Do you have to declare bankruptcy if you default on your mortgage?

No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.No. If you default on your mortgage the lender will take possession of the property by foreclosure. Whether you file bankruptcy is an unrelated issue.


Who owns the vehicle if you are the primary on the vehicle loan?

The lender owns the vehicle until it is payed for by the lender. The Primary lender will own the vehicle once it is payed for. It also depends on whose name appears on the title.


If a lender is already in bankruptcy can they still file a deficiency judgment against you in the state of Florida?

Unclear whether the deficiency would be filed by the lender or by the trustee of the bankruptcy estate.


If you're filing bankruptcy and you want to keep your car for which you have a loan would you have to pay the trade-in value or retail value of the car?

A vehicle is secured property therefore the debtor has only two choices when declaring bankruptcy. If the vehicle exemption protects it, then the debtor may reaffirm the loan if the lender is willing and keep the vehicle. If the exemption does not protect the vehicle, it will be taken by the trustee sold, the debtor will receive the exemption amount but will have to pay the lender the sale deficit plus any existing fees. When new bankruptcy laws are activated in Oct, 2005, the debtor will have to pay the entire loan amount regardless of whether the vehicle is kept or forfeited.