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Car Loan Discharged in BK, what's next? Help Please???


morechances
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I asked this question for Ladyn Red in a different thread but I just thought to get feedback from everybody.... Thanks

"Hello there LadynRed:

I have been reading your responses regarding bk and you seem to be the right person I want to ask this issue (since the lawyer we hired for our bk is useless--he is so hard to get a hold of or just don't want to talk to us anymore because our case with him is over), anyway, our bk has been discharged this last april. However, even after discharged i have been paying them (Ford) up until august. My husband has been deciding to buy another vehicle and so we went to a dealer and just thought we would just add the loan left on the other vehicle that was included in the bk. The dealer told us we don't owe anything on the other one anymore since it is showing zero balance on our credit report. Now my question is--I told Ford they can get the truck if they want to, we even attempted to deliver the truck to the nearest Ford dealer (as suggested by the bk rep at Ford) but the Ford dealer did not want to take it, so I called Ford again and they said take it back to the dealer where we bought it from, when we got there, they could not take it because their lot is under construction. I called Ford again and they said they would send someone to pick it up (that was 3 weeks ago) I called them again Monday and said the same thing, someone will call us Tuesday to arrange a pick up. What are my options if they did not pick it up? It is just sitting in our backyard, it is still in excellent condition, we want my husband's sister to use it but how can we register it under her name? Thanks for any advice...

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No one can register it, the title belongs to Ford. Its their property, they need to come get it. Write them a letter (get off the phone !) and tell them that if they don't come get the thing within 5 days, you will start charging them a storage fee of $50/day for as long as the thing remains on your property ! If I left my car in your yard, you could charge ME storage..well, you can charge Ford too !! Bet they come get it....

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Thanks for your reply LadynRed. Can they go after us with the owed balance on it? According to them (in their automated recording of your balance) we still owe them about $14 thousand, the truck is now worth around 5 to 6 thousand.

I've read about lien stripping during bankruptcy, where the value of the secured property is stripped down to the current market value and the rest of the balance owed is considered unsecured and therefore dischargeable. If this is the case, then the rest of the balance should be discharged??? :?:

Thanks again.

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No. We did not. Apparently in the state of MD (4th District), reaffirmation is not required and as far as I know, we did not sign any reaffirmation with Ford. The only thing I am not sure about is that in the beginning of the bankruptcy proceeding, they filed a motion for relief of stay and was granted. (because of our incompetent lawyer as I realized now, they did not inform us about this, the only thing we received is the letter stating that we have to pay FORD monthly--directly). The motion says that if we dafaulted further on the payment and did not cure the arrears (3 months at that time as they claim), they could take the vehicle. Based on my understanding, because of the diminishing value of the truck, they want to have that right to repossess the vehicle as soon as we defaulted without going into any proceeding. Another thing is that I have been paying them directly the monthly payment, not the trustee. Just like I was paying on my mortgage. I guess what they wanted was to collect the $668. plus payment to recover part of their security monetary interest instead of what the trustee would give them as payment (probably a few $$$) on the proceeds if they got on the list of the creditors in line for payment. I did not see anything on the Order that indicated that the loan would survive in discharge (or any wordings in that context). Although it states that if we converted to Chapter 7, they could reposses the vehicle right away and sell it and use the proceeds as payment. I tried to call our lawyer but, as always, he is unavailable. So, I really appreciate your response and wisdom to this dilemma--thanks again.

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  • 3 weeks later...
No one can register it, the title belongs to Ford. Its their property, they need to come get it. Write them a letter (get off the phone !) and tell them that if they don't come get the thing within 5 days, you will start charging them a storage fee of $50/day for as long as the thing remains on your property ! If I left my car in your yard, you could charge ME storage..well, you can charge Ford too !! Bet they come get it....

Drop it off at dealership you bought it from after hours, leave keys in an envelope with a note that its a ford repo and to please handle this!..

Dont leave any other info, and make sure car is cleaned out.

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Thanks guys, gals :) They finally sent someone from a dealership in Baltimore to pick up the truck. They sent us a notice via certified mail that they will be selling the truck on November 16. Can they still go after us with the remaining balance? The truck is worth about $5-6 thousand but according to Ford we still owe them about $14 thousand. So far Ford is reporting as IIB and discharged.

Thanks again.

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