Texas vehicle refuses to repo my vehicle!

[alaska708]

In Texas, filing a Ch 13, my credit union said yesterday that they don’t want the car back due to its age and condition. Question is this, what are my options here? Have atty file a motion with the court? Have a letter sent to have title returned for pennies on the dollar?

Just need some advice! I want the car put in their court as I’m broke, can’t pay insurance on two cars and it’s on its last legs. Cant the courts demand the bank to take back their property?

[shipo]

Just need some advice! I want the car put in their court as I’m broke, can’t pay insurance on two cars and it’s on its last legs. Cant the courts demand the bank to take back their property?

I do not believe you can force them to take it back, however, I have heard of some folks managing to use the legal system to get their hands on a title, a process which took years, so they could legally dispose of the vehicle.

[justbroke]

You should ask them for the title. Ask them what they'll take?

As already posted, the court cannot force a creditor to take any action when it comes for foreclosure and repossession. The manner which you may be able to get title, later, is when they both refuse to repossess, but won't release the title to you after discharge.

Actually, it's probably smart for the credit union not to negotiate with you. They can just let the case be filed, then file a secured claim for the entire amount due... sit back and collect everything owed. Then, after it's all paid off, give you title.

But wait... there's more! If you did file, you could thwart their plans by filing a motion to value which will only give them what the vehicle is worth. But, alas, they may still get money because the debt would now be unsecured and they'd get a piece of the disposable income.

In the long run, see what you can do now. Don't forget, though, that credit unions have cross-collaterized that type of debt and you must be careful if you have other debt with that CU.