Automobile in limbo

[beegtone]

I hope someone has some insight into this one:

Filed Chap 7 09/2009; Converted to 13 02/2010 and confirmed (after some wrangling) 07/2010. I kept one fully paid for vehicle and intended to surrender a second whose loan was in default with an $8500 balance. No claim from the lienholder (USAA) and no attempt to repossess to date.

My credit report shows the account as "Included in chapter 7" and a quick call to USAA indicates that they made a decision in 10/2010, based on vehicle book value, not to repossess the vehicle.

I guess this means that I can keep driving it but I wonder about the lien. Can I obtain clear title to the vehicle somehow?

Thanks in advance.

[lrprn]

I guess this means that I can keep driving it but I wonder about the lien. Can I obtain clear title to the vehicle somehow?

I'm not a lawyer, but it's hard for me to understand why the lender would voluntarily surrender the title to you if you didn't pay the car off. However, stranger things have happened, and USAA is known as somewhat more friendly to filers than some auto lenders. Did you ask about the title when you spoke with USAA?

[beegtone]

Did you ask about the title when you spoke with USAA?

I called back and asked a few more questions. The bankruptcy department has given the recovery department the OK to repossess the vehicle but as mentioned earlier they have decided not to do so based on value. They indicated that I could obtain the title if I pay off the loan ($8500), but also alluded to the possibility that I may be able to obtain the title after my 13 discharge. I'm going to drive it and keep the wear and tear off of my "legit" vehicle. I'll worry about the title in about 4 years.

[DebtEnder]

Do what I did, offer a sum of cash equal or even a little less then the true value of the car to a release of the lien. If your in an active 13 and you come out of it still with the car call em up again and work out a deal. That or drive it into the ground and then drop it off at a car dealership and give them a call telling em where it is, then buy new car if needed.