Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Car Redemption After Bankruptcy, Chapter 7 Discharge

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Car Redemption After Bankruptcy, Chapter 7 Discharge

    I was discharged from NJ Bankruptcy, Chapter 7 in Sept 2017. I had an outstanding and delinquent car loan balance of 12k. My car was worth far less. Requested to redeem my vehicle. Based on proof and appraisals of similar cars the judge granted the redemption for the amount of 3k. This was reasonable but at the time did not have the funds.
    The car loan was discharged along with my other debt. Now 6 months later, I still have my car but not the title. The lingering thought that they can at anytime repossess my car is frightening! I now have the 3k and would like to negotiate an offer for payoff for the title. But is this really possible after the fact? Theoretically, there isn't a balance and how to trust that they would release the title? Lenders are not a traditional bank. They are unethical with tons of lawsuits and complaints. If we did come to an agreement how to make sure it is legal/binding and will hold up in court. I did not have an attorney for my bankruptcy or I would be speaking to him about.

    Thank you in advance for any advice or help in this matter.

  • #2
    It is possible if the lender will agree. In this situation, I bet they will. Call and make the offer. In fact, start by offering half of what you are willing to play or less. Once you come to an agreement, ask them to put in writing that they agree to return the title to you and release the lien upon receipt of payment of he agreed amount. If the terms of the agreement are in writing and signed by the creditor, you will be able to hold them to the agreement.

    If that is not successful, you might be able to reopen the case in order to redeem. Maybe somebody else knows is if that can be done.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


    • #3
      Thanks for your advice!

      Comment


      • #4
        Yes, you can reopen the case and file a motion to redeem. That is sometimes necessary in order to obtain a title so that one can junk a non-functional car, which the lender never bothered to repossess. However, contacting the lender would likely be cheaper and easier. If the judge already set the value of the car at $3000, and you are willing and able to pay the $3000 now, then I see no reason why the lender would not accept that. If the redemption value is $3000, then that means that the selling price at a repo auction would be less than $2000, probably closer to $1200-1300, hence why they haven't picked it up.

        I would recommend contacting the lender and telling them that you have discharged the debt in bankruptcy, and would like to pay off the redemption amount set by the court in order to obtain the title. They are likely to cooperate because they want money, and attempting to repossess the car and auction it off would not make them any money--it would likely cost them money. Just be sure to get a letter from the company specifically saying that they accept $3000 as payoff in full, and will release any and all security interest in the vehicle before you send any money.

        Comment


        • #5
          Thank you for your advice! Just spoke to my car lenders and we came to an agreement of $2500 to redeem the car. They agreed that the payoff amount would relinquish me of any liens and release any and all security interest in the car along with sending me the title after payment. But unfortunately, the rep explained they do not issue this agreement in writing after a customer has been discharged from bankruptcy! I was like how can I in good faith trust you on just your word. Especially, your company’s unethical reputation. All she could tell me was it is their policy; they record all their conversations and that they do these transactions all the time. As much as I would like to finalize this I will not send them the money. I will though, look into opening the case.

          Thanks again.

          Comment


          • #6
            Originally posted by conniek View Post
            But unfortunately, the rep explained they do not issue this agreement in writing after a customer has been discharged from bankruptcy!...All she could tell me was it is their policy; they record all their conversations and that they do these transactions all the time.
            There is nothing to prohibit sending such a payoff letter for a discharged debt. The person you spoke to is full of it. If this really is the company's policy, that policy can only exist for one reason: so they can convince people to send money, hoping for a lien release, and then cash the check, keep the money, and "forget" about the verbal agreement. Remember that although companies record telephone conversations, they do it for their benefit, not yours.

            The correct way to proceed at this point is to reopen the bankruptcy, and request the redemption for $3000, the valuation already set by the court. The court will compel the lender to accept this amount and release the title.

            Comment


            • #7
              Thank you bcohen, again for your advice, encouragement and wisdom! With your encouragement I felt confident to move forward. My request to reopen my case was detailed; explained my dilemma when I reached out to the lenders. But I also was very clear that this request was for the sole purpose of redeeming my car for the $3000, which was already set forth by the courts. To be paid in full immediately. The hearing was granted, but the request was denied! I was baffled and speechless. I remember thinking if I had an attorney would this outcome be different. The lenders did not oppose the request. The lender's attorney did not even show up at the hearing. The judge rattled off something about you had 30 days to redeem, which was back in Oct 2017. What I don't understand is why grant me the hearing to have me get my hopes up and show up in court to have the motion denied?

              I'm happy I tried to do, no matter what the outcome. I feel like I exhausted all options. I think rather than wait and worry for the repo guy to show up I would stop driving the car, take the insurance off and surrender the car. Is there a right way to do this? I have read and it is so confusing that if you surrender your car after being discharged they can report a repo on your credit report? I will call them to pickup. I will not drive the car somewhere to meet them. They will pickup from my garage. Do I need something in writing? Proof of the pickup.To relinquish my responsibility? Can they charge me for the tow to pickup my car? Of course, my luck they will not bother to pickup.

              I just want to be done with. I will buy another car. Their loss. Thanks bunches! for all your help!

              Comment


              • #8
                I am not an attorney, but it sounds like the judge erred, or you made a procedural mistake in requesting the redemption. There is no expiration date to your right to redeem the car for its current value. If there was, then that would create the perverse effect of "trapping" people with an unusable car that they could not sell or even junk due to the lien on the title. Remember that as the loan has been discharged with respect to you personally, the lender's only right of recovery is the value of the car itself, a value which decreases as time progresses. It sounds to me that at this point, the lender does NOT want the car back, so the likelihood of a "stealth repo" is slim to none.

                Please see the following website for more information:

                IN RE: Carlton Dana PRATT and Christine Ann Pratt
                https://caselaw.findlaw.com/us-1st-circuit/1052293.html

                Comment


                • #9
                  I wish I had seen the original post back in May.

                  OP - you state you had an Order to Redeem for $3,000.00. Is that correct? If so, why would you need to reopen your case to file a Motion to Redeem? Would you not simply seek to enforce the Order you already have? But. . . even enforcing the Order a year later is a problem since you really needed to “act on your intention” timely.

                  What OP put in the Motion to Reopen is not operative to this issue. It was just a Motion to Reopen and was granted in due course. The issue of redemption (or enforcement of the prior Order) was not before the Court until OP filed the second Motion and got a Hearing on the specific issue.

                  Had I seen the post back in May I would have indicated that your judge could deny a Motion to Redeem (or enforce the Order it previously issued). 11 USC 521(a)(2) requires a debtor to file a Statement of Intention. It further requires a debtor to act on his/her intention within 30 days after the 341 meeting. Pursuant to 11 USC 362(h) the automatic stay lifts if the debtor fails to timely act on his/her intention. With the lifting of the stay the property is removed from the bk estate and the court has no jurisdiction. My guess is the Order denying OP’s Motion to Redeem made reference to this. He/she probably needed to complete the redemption timely (unless otherwise agreed to by the parties).

                  Des.

                  Comment


                  • #10
                    Thank you both! I feel like I have a lot more clarity on the court's desicion. While in bankruptcy I was granted my motion to redeem but I had 30 days to pay the lump sum. While in bankruptcy the courts can enforce the motion. But after being discharged, along with the stay lifted, it is now considered the lender's property. bcohen, I did read the case you referred to, and I think the difference is that the Pratt's had decided to surrender the car. The lender's had decided that it was not cost effective to even bother and yet not willing to release the lien.

                    Which is similar to my situation and becoming more apparent as time goes by! On second thought, I have decided to drive my car, until I can't, save some money to buy another. The worse that can happen is they decide to repo it. Oh well! Thanks guys for your help!

                    Comment


                    • #11
                      Like I said back in June, the car is simply not worth enough for the lender to repossess it. You can--and should--continue to register, insure, and drive it until it no longer runs. At that point, you can worry about how to dispose of it.

                      Comment

                      Unconfigured Ad Widget

                      Collapse
                      Working...
                      X