daisymay

Help! Question re Vehicle in Bankruptcy

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Daughter in Arizona filed bankruptcy recently. Bankrutpcy trustee said she could not accept information she submitted regarding her vehicle. States she must provide a copy of the title which she does not have since she is not the owner of the vehicle.

Daughter purchased the vehicle while living in California.

She contacted the credit union lien holder. They told her they do not have the information, she needs to contact DMV.

DMV initially told her to contact the lien holder. Later calls to DMV said it would take weeks for them to locate and send her anything regarding the title.

The bankruptcy trustee gave her 10 days.

Are there any options or suggestions anyone has to offer? She's dealing with logistical issues due to bankrutpcy in AZ versus CA DMV and CA lien holder.

Help, Please!

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And! What happens if the 10 days goes by and I can't get the trustee the copy of the vehicle title document?

What should I expect? Will they throw out the bankruptcy claim? And will I be able to refile once the vehicle title document is received?

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What do you mean your daughter is not the owner? Did someone buy the car for her and she is making payments for that person? Or do you mean that she bought the car and is making payments to the lien holder?

Do you mean that the title is being held by the lien holder?

Did she move to AZ and forget to register her vehicle there? If she filed BK in AZ, then she should have registered her vehicle there when she changed her DL etc.

If she purchased the vehicle she would have a vehicle registration and a contract (if she is making payments). She can provide the vehicle registration and sales contract to the Trustee. If someone else purchased the car for her and she is making payments to a lienholder, then she does not own the vehicle unless there is some sort of contract conveying the vehicle to her after her payments are made.

Please describe exactly what you mean "She does not own the vehicle".

In case she is making payments to the lien holder and needs a copy of the CA registration then she can go to the DMV site or CA or AZ, where ever she has the vehicle registered.

Here is CA DMV for registration info: http://www.dmv.ca.gov/forms/formsreg_alpha.htm

Here is the Arizona DMV site that explains the title info: http://www.azdot.gov/mvd/vehicle/titleholding.asp

In your second post you indicate that "will you be able to refile once the title document is received?"... Did your daughter file BK or did you file BK?

The Trustee can dismiss the BK if you do not provide the required documentation. They can dismiss with or without prejudice. When the Trustee requests something their timeframes are not flexible. Do you have an attorney (or your daugher) for this BK or did you file pro se? You may have to go to the DMV and physically wait for the title to meet the timeframe requirement of the Trustee. You do not want your case dismissed as the BK filing stays on your credit regardless of the outcome.

Edited by Denita
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*Daughter filed bankruptcy in AZ (pro se), not me...I am only trying to help her gather answers to questions.

*She bought the car in CA and is/was making payments to the lien holder but is giving the car up via the bankruptcy.

*She is the registered owner but has not been given title since the loan has not been fully paid.

*She moved to AZ and registered her vehicle there, but AZ DMV told her they didn't have "title information in their records since the car came from CA".

*CA DMV said it would take 4-6 weeks to send title information, well beyond the 10 days the trustee gave her.

Thanks.

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She needs to provide a copy of the purchase agreement to the Trustee and a copy of her vehicle registration. Have your daughter contact the vehicle lender right away for a copy of the title info.

The lienholder should be able to supply your daughter a copy of title information right away to provide to the Trustee. The lienholder will want to cooperate with your daughter because they are the ones that have something to lose. If the lienholder can not prove they have perfected the lien on the vehicle, the Trustee can actually avoid the lien and take the car and liquidate it as an asset of the bankruptcy estate.

In her Statement of Intentions make sure she checks off "surrender" the vehicle.

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