What do I do with this car? The bank doesn't want it and neither do I

[LadyInTheRed]

I do not like the final update.

Me either. It's not right that a lender can refuse to repossess and refuse to release the lien. We need another round of Bankruptcy reform - pro-debtor reform this time.

[justbroke]

I do not like the final update. That said, at least you have this part of your life over with and you can move on with your fresh start. Credit Unions are special creatures and cross collateralization is a pain.

[tobee43]

if you don't want or need the car give it to a legit charity and get a nice write off on your taxes, you'll get money out of it that way as long as you make certain you get a receipt. they advertized in the ny area and nj i don't know about pa, but on the radio i would always hear ads about we want your car for the poor etc. (not like WE aren't the poor lol). but this way you can do something good plus it will help you increase your refund if you usually get one from your taxes, or help you pay less taxes if you always end up paying.

just a thought.

[pinkpeanut01]

Final update for the archives to potentially help anyone else. We ended up settling with the credit union for release of the lien and title with the help of our BK attorney (to whom we had to pay an additional fee. He tried to get the fee included in the settlement price, but it didn't work, and we just wanted it over with.) The car has been sold. It is over. We owed about $2K on the car, they got about $1K, but it was cross-collateralized with about $10K, so we settled for about 10% of what they would have otherwise gotten if not for BK, and at least it is over now.

[doni49]

But I thought BK protected me from having to cover the difference?

BK protects you from debts incurred PRIOR to filing. If you do as you previously indicated any charges incurred with the towing company would be considered POST-BK debt.

[pinkpeanut01]

I'd be careful about that. You are the legal owner, even if you haven't renewed the registration. If the car doesn't sell enough to cover the expenses to tow and auction the car, does the owner have to cover the difference? If so, I bet they go after the owner, not the lienholder.

Have you tried writing a letter to the bank citing Pratt and saying that if they don't either repossess the vehicle or release the lien, you will reopen your case and file a complaint for violation of the permanent injunction?

But I thought BK protected me from having to cover the difference? What the heck do people do with cars then? (Not angry toward you, just the situation.) It has no tags, no registration.

ANOTHER update - The attorney did eventually write me an e-mail a couple of days ago saying he called them and they said they would be in touch with me. He told me if they don't call by the end of this month to let him know. Perhaps I can mention that case to him and he can include it in a letter. This is just nuts.

[LadyInTheRed]

I'd be careful about that. You are the legal owner, even if you haven't renewed the registration. If the car doesn't sell enough to cover the expenses to tow and auction the car, does the owner have to cover the difference? If so, I bet they go after the owner, not the lienholder.

Have you tried writing a letter to the bank citing Pratt and saying that if they don't either repossess the vehicle or release the lien, you will reopen your case and file a complaint for violation of the permanent injunction?

[pinkpeanut01]

This is two times now in this thread that I have had to update with people backing out on their words!! Attorney was sweet as sugar on the phone, and now he won't return my phone calls or e-mail! Unbelievable... Geez. I would have paid him $50 to make the phone call just to be rid of the damn car.

I looked into my state's laws, and we're going to do what the law says for abandoned vehicles. We're calling the police (or my father is) to tell them this vehicle is abandoned and he wants it off the property. Law says they'll call a salvor/tow truck, the owner (lienholder - it's not even registered to us anymore, no tags) will be notified where it is, then the title will go to auction. Anyone who wants them can bid on the title. That car is bad mojo. Can't wait to be rid of it. Hopefully THIS goes smoothly. Two strikes so far...

[justbroke]

Isn't it amazing how an attorney's phone call, stating the same thing, is more powerful? And I like that your attorney did that for you without charging you!

[pinkpeanut01]

Thanks, justbroke.

I just called my attorney and he was nice even though it's been a while since my BK. He is going to call the credit union and see what he can come up with, if anything. He says it is a common problem and they might be more responsive hearing from an attorney. He has also gotten a response by agreeing that any salvage yard funds go to the lender. They might be happy to take $300 from a junkyard. We'll see...

[justbroke]

The only way is to re-open your case and file a stay violation based on the Groth and/or Pratt cases.

[pinkpeanut01]

Providing an update to this situation. The lienholder ended up not being reasonable at all. They told my husband on the phone that the legal department agreed to release the title and we should receive it within a week. After three weeks, it never showed up, so we called again. We are only "permitted" to speak to their bankruptcy department, which refuses to take or return our phone calls. The regular old customer service representatives claim ignorance when we mention what was previously told to us and add that we can have the title if we pay off the loan. I am researching what to do, but does anyone have any suggestions? Do I sue for the title? Do I see for disregarding the stay of bankruptcy? I REALLY just want this car gone, I am just not sure how to proceed.

[justbroke]

So nice to know that there are reasonable companies out there!

It's not about being reasonable! If they were reasonable, they would not have gone this far. What happens is that they are being sensitive to the affects of bankruptcy and that they could be penalized, financially, for violating the discharge injunction.

[grisandole]

So nice to know that there are reasonable companies out there!

[justbroke]

UPDATE: Looks like I worried for nothing! After having this car sit in a driveway for over a year, the credit union just called to say they are releasing the lien and the title is in the mail!! Yay! Hopefully we can get the car running again for cheap and sell it for a few bucks. If not, we'll sell it not running for fewer bucks, but it feels so good to know this is one more sign of our past being permanently buried.

See, that was not so bad. I am glad that they saw the light!