Dirt Bike after Discharge

[eileenwilson]

Ok, I've seen this thread before but my situation is a little different.

I'm in California btw.

So, when I met with my lawyer I said I didnt want my Honda Card (dirt bike is on that card, so there's a lien) or my car discharged. I've paid those two religiously and wanted to keep my bike and car. The rest could go!

Anyways, I was finally discharged (8 months later!) And I checked my credit yesterday and my dirtbike is at a zero balance and the note says "chapter 7 bankruptcy).

I've been paying twice the minimum on that bike since before the BK and haven't received any statements or anything, I figured because I was in a BK but after discharge they would send me a statement. I owed like another 3000 or something on it (although I've paid more than that in just interest on the stupid card) and I've owned the bike since 2005.

My question is, should I just keep paying? Call Honda? Wait for my atty to respond? (they dont respond very quickley or efficiently). Or stop paying and let them offer me to pay it off, I doubt htey want the bike back.

Any info would be great.

Thanks!

Eileen

[lrprn]

My question is, should I just keep paying? Call Honda? Wait for my atty to respond? (they dont respond very quickley or efficiently). Or stop paying and let them offer me to pay it off, I doubt htey want the bike back.

You didn't mention if you and Honda signed a reaffirmation agreement for the bike loan or not, but in this case it doesn't matter.

If you want to be 100% certain to keep the bike then you need to keep making on-time payments until it's paid off. If you send even one late payment, then you open the door to Honda starting repossession actions against you. Whether that will happen may depend on the current market value of your bike and whether it's worth Honda coming after it. What is the current market value of your bike?

As far as Honda 'offering you' to pay it off, reducing what you owe to them benefits you but doesn't really benefit them. They hold the legal upper hand here because they hold the title to the bike and I assume filed the lien against it as well.

[eileenwilson]

No reaffirmation agreement.

I think the current value would be maybe 1500-2k, not much. It's a CRF 230.

Ok, so I should just keep making payments? I would like to know how much till it's paid off and they're not sending me statements.

Thanks for your reply! That helps.

Eileen

[lrprn]

Since Honda owns the bike loan, therefore they have no loan to pay off if they repossess a bike that has enough market value (over $1K) to make repossessing it worthwhile. If you want to keep the bike, I would definitely continue making on-time payments.

I would like to know how much till it's paid off and they're not sending me statements.

It's within Honda's rights to not provide a monthly bill or statement to any debtor. Their desire to help you out died when you filed against them and didn't reaffirm.

First try calling Honda directly and asking them to send you a current balance and a payment record documenting all payments made since your bk was discharged. Also ensure that you are sending your post-bk payments to the right address and department.

If Honda pushes back on doing that, then next send them a registered return receipt letter asking them for the same things. Hopefully that will do the trick. In the meantime, just keep doing what you've been doing - sending in those payments on time every month.

[eileenwilson]

excellent, thank you! also, I did ask my lawyer not to include it in the bk, and i saw the paperwork and it wasn't on the dischargable items. So maybe i can say "hey you guys made the mistake" cause the my gmac loan is correct and i get statements from them.