?? on Unperfected Lien on Vehicle

[soldout]

Hello everyone,
Rookie thread poster here. I have found a tremendous amount of great information here but havent found much of anything on my problem specifically. So here goes...

Jun 3 - Filed with court
Aug 3 - 341 Meeting (No Creditors showed)

Oct 3 (Date said BK would be dishcarged)

Everything was running smooth until a few days ago when i called the bank and requested them to come get their property (vehicle) since we were surrendering it and we cant (dont) want to afford insurance on it since we currently dont drive it. (PAYMENT HAS NOT BEEN MADE SINCE NOV 2004) They said that they never PERFECTED the lien and that their name (Navy Fed) is not on it so they cant repo it. My lawyer is telling me that we will have to ammend this to change it to an unsecured loan, therefore making the asset non-available to the creditor.

Anyways, I have four questions.

1. If we do ammend will the Trustee have the right to come and claim the vehicle and dispurse the monies between all unsecured creditors?

2. If we do ammend and the Trustee doesnt want the asset (feels that it is unworthy/waste of time), how do I go about getting the title into my name?

3. If an ammendment is not done, and the bankruptcy gets discharged, who has a right to the property. The bank? The Trustee?, or Me? and what actions should be taken with this asset if this happens?

4. Will any of this prolong the BK and possible result in a denial?

I really dont care about this vehicle because it really isnt worth much. It is a 2002 Chevy Impala with over a 100K mi, tons of hail dents, childrens staines, and many mechanical defects. Thanks to my wife it is now basically a Lemon.

Thank you in advance for your help and I look forward to meeting everyone and maybe one day helping out with some questions.

~soldout~

[soldout]

BUMP!

Could someone respond here?

Even a "Man, that is a good/bad question. I don't really know". Or "Are you stupid or something, I cant believe you dont know that". Just about anything would help.

Everyone else above me got a reply in a few minutes. Whether the replyee knew the answer or not.

Thanks a bunch!!!!!

~soldout~

[StaciMM]

This is an odd situation... What does the title show?

If the debt for the vehicle is discharged in the BK, even though the creditor doesn't want it back, I would think you could drive it to their parking lot and leave it.

[Minnymouth]

My case involved a mobile home with unperfected title and Trustee took it................
So quite possibly trustee can take the vehicle also..............


Also I was discharged on everything but the mobile home issue.......

Mobile home issue is 353 days and still counting - not settled yet.........

Legally, I owned my mobile home free and clear because they did not have lien against it.....thats why the trustee seized it as an asset.....

They are correct - they cannot repo on you because they have no lien - the car is legally yours....free and clear....


Minny

[soldout]

This is an odd situation... What does the title show?

If the debt for the vehicle is discharged in the BK, even though the creditor doesn't want it back, I would think you could drive it to their parking lot and leave it.

I dont have a copy of the title but i did call the DMV and they told me that the Bank (Navy Fed) was recorded as the lien holder. I dont know what date that it got perfected (if it did) My lawyer is currently looking into that. I know there are certain time frames that they have to take care of that. I wish there parking lot was close but I am in GA and they are in VA. (Thats probably one of the reasons they dont want to repo it, considering gas and all that)

"They are correct - they cannot repo on you because they have no lien - the car is legally yours....free and clear.... "

So if the trustee doesnt want to take it and sell it for cash distribution (considering the low amount it is worth) then I should apply for a new title and be able to keep it free and clear. That would be great!

Thanks for your both your help, you have taken some of the pressure off my shoulders and made my day a little brighter.

~soldout~

[Minnymouth]

Possibly they have run down and put their lien on your title now that its showing up......if thats the case, and its legal for them to do that during BK, then yes they do have a lien now and they can repo it....

Minny

[Minnymouth]

They may be recorded at DMV as the lien holder but if its not been put on the title - they do not have a lien.................

Thats how the trustee got my house - the title did not have the lien listed on it..... yet bank said they had lien and insurance papers said they had lien.....

Minny

[soldout]

They may be recorded at DMV as the lien holder but if its not been put on the title - they do not have a lien.................

Thats how the trustee got my house - the title did not have the lien listed on it..... yet bank said they had lien and insurance papers said they had lien.....

Minny

I am unsure about the title as i havent seen it for a while. The bank is the one telling me and my attorney that they dont have a perfected lien. They are now digging through their records dept. to try to come up with something but what they have now is no perfected lien.

That is just unfair. How are we suppose to find out if it has been perfected or not. With the information like you said (Bank and Insurance saying they had a lien) you would think you are safe. I know my situation is totally different from yours as I am willing to surrender my car, but a home like yours when you have paid so much on! I just think that is rediculous.

~soldout~