hotrod

discharge reafirm

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i recently had my dis may 11 i didnot reaffirm my toyota i havenot paid on it in 6 months they havenot called or came to get the car what should i do i still have ins on it should i keep driving it

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Keep insurance on it until they take it...and they probably will. Make sure no personal items of value are kept in the vehicle from this point on. You can keep using it until they take it. If they never take it, well, consider yourself lucky.

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its been almost 2 yrs since dis cred sent letter that they was going to put a judgement on me and repossess the toyota that i didnot pay on in 2 yrs the truck was discharge they never came and got it can i get in trouble and can they file a judgement the only reason they even sent letter credit burea dispute that account i dont think they realize that it was included in bank with no reafirm what should i do drop it off or what i dont want to mess up my credit i thought it was there responsability to pick up truck

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The letter is a violation of the discharge injunction. This is the vehicle that you did not reaffirm, right?

BTW, if they put anything on your credit report except "included in bankruptcy" and zero balance; it is a violation of the discharge injunction.

Contact your BK attorney right away. IMO I would bring sanctions against them for trying to collect a debt after it has been discharged. It could result in good $$ for you and they would have to pay your attorney's fees.

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my concern they never came to get the vehicle back was i supposed to take it to them or wait for them to repossess they never did and now its 2 years later they car is still at my house but it was included in discharge should take it to credit union or let them come get it this is the first time they sent letter in 2 years

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I guess they don't want the car that bad or they would have come got it. Keep it till they come get it. You may have a free car if they don't come get it.

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That's not a good idea. You can't keep secured property w/o paying for it - and it's not a 'free' car because the credit union still holds the title - and they always will. Call them to come get it - or have it towed to their location, leave them the keys and walk away - it's THEIR vehicle!

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LadynRed, I will defer to your expertise - but he notified the creditor at the time of BK and they did not come pick up the vehicle. Isn't it his responsibility to make it available and their responsibility to actually pick up the vehicle?

I know he doesn't get to keep a vehicle for free...but can the OC just leave it there and then come after him two yrs later for the money?

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if they reafirm the car i would have recived letter or it would be on pacer that the debt was reafirm and if it was reaffirm would they wait this long

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You would have had to sign a separate reaffirmation agreement that is also signed by the creditor and your attorney. IF you attorney was not willing to sign it, then you have a hearing to make sure the reaffirmation is not a hardship. If you have a reaffirmation agreement, then yes, you are obligated to make the payments required in the agreement and then they can come repossess.

Did you reaffirm it?

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i dont recall signing also after disch attorney said there was no reafirm would it be on pacer if i did

Then your personal liability for the payment has been discharged in the BK. You still need to turn over the collateral to the lender. You can call them to make arrangements for the OC to pick up the vehicle. Follow up with a letter. I still think you need to contact an attorney to get this finalized - and bring sanctions against them if they are trying to collect the debt.

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There is some misunderstanding here.

Firstly, the credit union does not own the car. In a purchase money agreement the lender gives the consumer cash which the consumer then uses to buy the car. The lender holds a lein against the property which they must exercise themselves. The Title is in the the consumer's name, not the lender.

When the credit union executes their repossession rights under the lein, they have to apply for a new Title in their own name before they can transfer the car to any one else.

That should pretty clearly tell you that the lender does not own the car, the conumer does. It is just collateral in the consumer's posession for the cash lent. If the creditor doesn't want the collateral back, you don't have to give it to them.

(and, after a certain period of time where the lein is not perfected, you can apply for a clean Title from the State and get the lein removed...usually once the Statute of Limitations has expired)

Now for the issue witht he BK. Several courts have made it clear that the Lender in no way can cause any expense on the discharged debt to become the burden of the debtor. There have been cases where the lenders have refused to take back collateral when the borrower abandons it and the Lender gets whacked for violating the injunction by leaving the consumer in a position where they can neither dispose of the property or turn it in to the lender - you can't salvage a car without the title and the lender generally holds the title (even though it is not in their name). Also this puts the debtor in the position of dealing with licensing and/or vehicle fines levied by the government.

So keep and use the car until they take it. If they don't take it and you want to abandon it, the lender HAS to take it back or they are in violation of the injunction. After the SoL has run, if they still haven't taken it back, apply with the DMV for a new title because the CU has abandonded their interest at that time. Have a lawyer do it for you if you aren't confident of how to process this.

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From what is sounds like, the OP did not reaffirm the debt that against which the vehicle was collateral and they have not exercised their rights to repossess the vehicle.

In this case, I think LadyinRed and Metheus are both correct. Each state handles liens on vehicles differently. Some allow the consumer to have the title but the lien is listed on the title and others allow the bank to keep the title. The lien is removed from the title or sent to the consumer when the vehicle is paid off.

You or your attorney should have been working with the bank all along to transfer the vehicle over to the bank. The fact that neither of you have made attempts to transfer the vehicle does not negate that fact. The bank however cannot force you to pay the loan just to get the title to dispose of the vehicle either. That would pervert the BK process because then, banks would know their loans could never be discharged. The bank therefore either has to take action on the lien or abandon it.

What I would suggest to the OP is to ask their BK lawyer what a legally acceptable amount of time would be to request that the bank takes action. Lets say in the state the OP is in, that would be 90 days. The OP (or their attorney) then should send a letter to the bank (I would suggest the BK department of the bank) stating that the debt was discharged in a chapter 7 BK, the loan was not reaffirmed, the OP still has the vehicle, and the bank has not made an attempt to repossess the vehicle. The bank therefore has 2 choices:

1) If the bank intends to enforce its lien, they need to contact the OP (or their attorney) and set up a time and place to transfer the vehicle to the bank. Although there is a no contact injunction, I am sure that a judge would allow communication to facilitate a legal and civil transfer rather than have a midnight repo and all that entails.

2) If the bank intends to abandon their lien, then must send either a lien release or a clean title to the OP (or their attorney) as soon as possible.

If the bank does not act within 90 days (or the allotted time), the OP (or their attorney) will begin to take action to either force the transfer of the vehicle to the bank or to get a clean title on the grounds that the bank by its actions has abandoned their lien. If the bank fights the efforts, then they will be taken to court for violation of the discharge.

If would look better to a judge if you had made attempts to transfer the vehicle to the bank and were rebuffed than if you just kept the vehicle. Your BK attorney should have handled all of that.

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