Bank wants signature to repo RV

[copernicus]

Sorry, this is a bit long . . .

We were discharged on a chap 7 last month. Surrendered the house and truck and we have a travel trailer remaining. The bank holding the note on the trailer is insisting we sign and fax a paper with the following wording before they repo the trailer:
_____

VOLUNTARY SURRENDER OF COLLATERAL AND WAIVER OF
RIGHT TO NOTICE OF SALE OR DISPOSITION OF COLLATERAL

our names, account number, original debt amount

incorrect description of the collateral (trailer)

The Debtor hereby voluntarily surrenders all of his rights and interest in the above described collateral to bank name. The Debtor specifically acknowledges that neither a request nor a demand was made by bank name for the surrender of the collateral, nor was a threat, statement, or notice made or sent by bank name that bank name intended to take possession of the collateral.

The Debtor realizes that any deficiency arising from the sale of the above described collateral is the responsibility of the Debtor.

WAIVER OF RIGHT TO NOTICE OF SALE OR DISPOSITION OF COLLATERAL. The Debtor by his signature hereby specifically waives the right to receive notice pursuant to Sec. 409.504(3), Stats., of the sale or other disposition of the above described collateral by bank name.

date, signitures

_____

I have a real problem with the next to last paragraph. This seems to be some kind of legal flim-flam attempting to hold us responsible for the amount they don't get back from the sale of the trailer in spite of the chap 7. They insist it is some kind of generic form as a "courtesy" to us. They also say the state in which we reside is a "self-help" state granting them the ability to repo without notice.

The trailer is in excellent shape, should sell/auction as well as any other trailer of its kind on the market. We just want it gone. It's a sad reminder of bad times we are slowly recovering from.

I think they are quite upset since we moved out of state (>500 miles) after purchase. We moved while making all payments on time and prior to filing the chap 7. They are a small local bank. Also strange is they also balk at us referring to the trailer as their property.

I want to tell them they can just forget the paper and pick up the trailer.

Do they have any recourse if we refuse to sign their paper?

[justbroke]

The debt was discharged in your Chapter 7. I would kindly FAX them the discharge injunction and inform them that "any deficiency arising from the sale of the above described collateral is the responsibility of the Debtor" is an attempt to continue the collection of the debt and is a contempt violation.

I would not sign it at all. They have no recourse. It's up to them to exercise their rights of repossession under the laws of the State in which you now live and the trailer is located.

[StartingOver08]

JB has an excellent point. Fax them the discharge with your own letter like JB suggested first. Then if they continue to insist you sign this document or one like it with any verbage relating to your paying the deficiency, then sue them for violating the discharge injunction.

[copernicus]

I was pretty sure this was the case but not having a lot of financial and especially bankruptcy experience I wanted to get a read out on this. I wonder just what they are trying to do since they have so much to lose playing these games.

[justbroke]

I was pretty sure this was the case but not having a lot of financial and especially bankruptcy experience I wanted to get a read out on this. I wonder just what they are trying to do since they have so much to lose playing these games.

It actually reads like "boiler plate" language for someone who was voluntarily surrendering the property. A "self" repossession, if you will.

[Strapped4Csh]

I wouldn't sign it. As others said, I would either fax a copy of the discharge, or just call the bank and tell them where it is and that they are welcome to come get it if they would like to. I'm guessing they just took a copy of their standard voluntary repossession form and sent it your way.

We recently had something similar with honda. We're thinking of getting out of our van that was never reaffirmed in our chapter 7. Called to talk to them about it and they basically said the same thing - if you surrender it, it will be a repossession on your credit. Our atty confirmed what we thought was the case - they can't do that - even just saying that is a violation of the law.

[teacher]

I wouldn't write any new letter. I'd return their unsigned form to them (if they sent it to you) with a copy of your discharge. I would explain nothing.

[LSUTiger32]

Yep, sign NOTHING. They have all the info they need through the BK. They can come get it whenever they are ready.

[copernicus]

Thanks all! We have faxed back the discharge order and a note indicating the location of the trailer telling them to call our lawyer if they have any further questions or to call us to schedule a pick up date/time. Didn't sign anything. Haven't heard squat for the last week. I think I'll send a registered letter with the same info in a week if we still hear nothing from them. I don't want them trying to tell the BK court that we are trying to hide the trailer from them.

[aces67]

You did the right thing! Don't sign anything for them. If they can't just pick up the trailer without a fuss then you need to call your lawyer.