Avoided Lien by Trustee - UPDATE!

[KMC4]

Hello,

I posted a few days ago asking what an avoided lien meant. While I received an answer to my question, I found out why the Trustedd avoided our lien. It didn't have to do with the title/registration not being filed on time but rather the fact that both me and my husband's names had errors on the car registration. We both had our middle initials added to the end of our first names without a space which created a loophole for the Trustee to conclude that the registration was "unperfected". From the time we bought the car (not even 2 months ago) we've paid a total of $3,000 (down payment and first car payment).

I just received a call from the auction place who is going to pick up the car either tomorrow or Monday...I didn't expect this to happen so soon. The kind of good thing is that we still have our Expedition sitting in front of our house which is also being included in the bankruptcy so I will drive that until we can get another car.

My question is how soon can I expect the Expedition to get picked up? I'm going to have to withdrawl $$ from my 401K to either put $$ down for a new car loan or just buy a used cheaper car. Any thoughts would be greatly appreciated.

[JRScott]

Hard to say really. Depends how quickly the company that owns the liens on the Expedition moves.

If you can avoid tapping your 401k do so even if that means an older used car. You can't replace the compound interest your 401k would generate even if you later paid back the loan from it.