Canceled extended warranty

[Pavetim]

Ok I waited till after the discharge to process my extended warranty cancellation in my RV. It says if there is still a lien the money goes back to lienholder but no lien money goes back to me. The company at first said yes if you show it was included in the bk money goes to me now they are changing their story. What's your thoughts on this cause my understanding is I surrendered RV in Feb and it was discharged so no more lien, not even an account.

[justbroke]

You'll have to look to the language in the extended warranty contract. I'm guessing that it was purchased from the RV dealer at the time the RV was sold. The key is just that; did you finance the extended warranty or did you purchase it separately outside the purchase. If it is the former, then value of that extended warranty belongs to the lienholder since they almost certainly have a "security interest"--probably a PMSI--in the RV and the extended warranty.

Why would the lienholder, that financed the warranty, allow you to reap a windfall by receiving that after you discharged the debt (and remembering that the debt included the extended warranty)? It would not.

I'm guessing, and I'm just guessing without seeing your Installment Contract and Security Agreement, that it reads something substantially similar to:

The collateral includes the vehicle described above and all parts, attachments, accessories, accessions, equipment, and all replacements thereof or additions thereto, together with any service contracts, warranties, and insurance products financed in this contract, and all proceeds thereof. (emphasis added is mine.)