USAA did not reaffirm and did not reposess?

[jenniferm]

Hi,

I filed and was discharged almost 2 years ago in 2018. I had 2 car loans at the time USAA would not reaffirm, so I agreed to turn both the cars over to them. They came and took the newer 2010 car, but did not take the 2004 car. When I called them, they said that it would cost them more to collect than it was worth, and they weren't going to take it. Well, I have been registering it every year and paying for maintenance, but I can't get my title. I was told I could pay the outstanding loan in full to get it or just drive it. Now, I can't move states, I can't give it to my kid, I can't even scrap it. Is it right for the debt to be relieved, and then when I offered the property back they didn't take it, but hold the title hostage on debt that is forgive? I have been just letting it ride as the car is still in relatively good shape, but hate having this hang out in the wind. What are your thoughts? Sadly, the lawyer I used retired and isn't answering emails anymore. Oh, and of course, USAA decided to stop doing business with me at that time too. Totally understandable.

Thanks,
JenniferM

[shipo]

A few questions:

• What kind car is the 2004?
• How many miles on it?
• How much money did you owe on it when you filed?

[justbroke]

Oh, this reads exactly like the infamous Ford Motor Credit case from Massachusetts (I think), where Ford did the same thing. The judge eventually found for the debtor since Ford didn't want the vehicle. As shipo eludes, find out the value of the vehicle, If it's essentially worthless, you may be able to junk the car. Or I totally misread shipo, and shipo wants to buy it from you.
Maybe if it's essentially worthless you could offer $100 to USAA to release the lien. If they refuse, the only real way to deal with it is to reopen the bankruptcy case and, perhaps, file a Motion to Redeem. I would stick it to them and file a redemption motion for $100.

And, what is keeping you from moving to another State? People move vehicles all the time between States. When you register the vehicle in the new State, that State obtains the title from the former State and processes the title just like any other title transfer.

(If someone is thinking of a Motion to Compel, these don't work. While it semi-worked in the FMC case from the Northeast, no secured creditor has to foreclose or repossess any property. The creditor can rest on their rights for as long as they please. I think the FMC case was unique in that FMC was most likely violating the discharge injunction and were demanding payment.)

[jenniferm]

Thank you for the replies. I am in WA state. The vehicle in question is a 2004 Saturn Vue Redline. It has about 143,000 miles, so not too bad. I have owned it since day 1 off the car lot. I had to refinance and used it against a loan and owed about 3000 at the time. They didn't want to do anything really, only paying off the loan would appease them. So, when I called the office that holds the titles at USAA, I asked them what I should do and they just said "I don't know" and that was that. They couldn't just come to get it now could they? that's my biggest worry, is that one day I will wake up and it will be gone. Bankruptcy is stressful enough and it should have been over 2 years ago. I didn't know the registration/title would let me move that's a good thing to know. I am also confused as to if I have to have comprehensive insurance, so if it is in an accident, what happens next? Ugh, The current market value is anywhere from 15500-2500. Is it worth the cost of reopening the bankruptcy? I also have to weigh the cost of repairs- the car is getting on in age and needs things like wheel bearings and breaks.

[shipo]

jenniferm, assuming the body is in good shape, the car has the venerable Honda J35A3 engine which is typically good for an easy 300,000 miles, so, if you can figure out how to obtain title, I say it is worth keeping and fixing. Things like bearings and brakes are trivial expenditures compared to buying a new(er) car.

[jenniferm]

I agree shipo! I will see if I can file a redemption motion for $100 and get it taken care of and off my mind. Thanks for the advice!