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Unperfected lein on car with no value

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    Unperfected lein on car with no value

    My bankruptcy us finished but I am left with questions about my vehicle I filed and the lein was unperfected on my 01 mustang gt but the trustee decided it did not have enough value to try and sell but my lawyer just said they don't want it and I never heard anything else do I still owe the car lot or is it my car now free and clear? I bought the car from a really rinky dink lot that literally didn't have me sign any paper work except a peice of not book paper with a price on it

    #2
    I would go back to my attorney and ask specifically. Perfection of a lien is specific for your State. For example, you may have a valid "lien" and a valid promissory note, but the lienholder forgot to or didn't properly perfect that lien. In Florida, perfection of a motor vehicle can ONLY happen if the lienholder is shown on the title of the vehicle. If a lienholder in Florida didn't properly have the title updated, then they may still have an enforceable lien but they may have trouble if another lienholder perfects their lien and obtains priority.

    If you wanted to properly deal with the disposition of this lien, you may file a Motion to Determine Secured Status and Avoid Lien to have the court dispose of the "security interest" in the vehicle. The Bankruptcy did remove your personal liability to pay the promissory note, but if there is a security agreement pledging the vehicle as collateral, that lien (security interest) may still be enforceable even if unperfected.

    The real question for you, is what did you sign! If it was not a promissory note which granted a security interest (lien) on the vehicle, then you would own it free and clear. If you signed a promissory note that granted a security interest... then the security interest would remain enforceable, however imperfect.

    It reads as though there was no real paperwork and you may own the car free and clear. Please run this by your attorney since I'm relating how I understand (and have dealt with) such issues under Florida law.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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