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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.

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โˆ™ 2006-09-06 22:35:43
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Q: If a vehicle was surrendered in bankruptcy but the lender will not pick it up can the lender be removed from the title?
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Bankruptcy surrender Lender will not pick up vehicle?

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


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.


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.


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.


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.

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