Advice Needed...Ch13 Discharged but Finance Company will not turn over title

[Motivatedx3]

Hello, I was discharged from a chapter 13 which included a vehicle in February 2013. I called the finance company in May requesting the title but I was told I owed $18,000 on the vehicle and it would be repossessed if I didn't pay. According to the Trustee, the finance company confirmed the credit card and personal loan but not the vehicle loan. Also, the finance company stop taking payments after over $8,000 was paid therefore the trustee assumed the debt was paid in full.

Now, I am paying an attorney AGAIN to file a motion to have the finance company turn over the title or the monies paid. The vehicle isn't worth 8k or 18k but I'm worried I will have a repossession on my credit.

here are my questions: has anyone else gone through this? does anyone have any advice for me? what would you do in this situation?

[despritfreya]

Who is the finance company? Sounds like your attny will hammer it and, hopefully try to recover the legal fees. I can say that this issue has never come up for any case I handled but I can also tell you that if it did I would file the same motion your attny is filing (assuming the facts justified it). Let the attny handle this.

As to the repo issue, hopefully the attny is filing for a Temporary Restraining Order against the finance company.

Des.

[Motivatedx3]

USAA! The attorney filed a motion requesting USAA turn over the title or the amount I paid towards the vehicle. The legal fees will be paid by me.

[justbroke]

You attorney should also motion for fees and expenses and have USAA (the creditor) pay them. This is standard practice. I am very interested to read how this turns out. As Des wrote, this particular issue does not often occur.

[Motivatedx3]

I will ask the attorney about the expenses being added to the motion. This is all new to me and I am extremely worried about the finance company repossessing the vehicle. Its over 10 years old but my concern is how will this be reflected on my credit report. Since the discharge, this account has been reported with a $0 balance.

[keepsmiling]

They are wrong and you are right.
Don't you or your atty let them get away with any nonsense. Listen to des, he/she is an EXPERT at this!!! JB too.

Bloody banks try to get away with murder... don't play their game. Strike back and HARD so they stop it. We are talking possible sanctions here.
Although chances are this just fell into some newbie's hand and they don't get it.

You will come out of this smelling like a rose, so stop worrying

[Motivatedx3]

Thank you

[Motivatedx3]

Update...today, I received a order stating USAA will surrender the title or the amount listed on the order. I guess I'm just waiting to get a final answer from USAA

[justbroke]

We can't wait to read about the choice that USAA has made!

[Motivatedx3]

Update #2, its been a week and USAA has not responded to the order. #patientlywaiting

[kornellred]

Sounds like somebody made a whopper of a mistake at the finance company. You might get the title to the vehicle or the money back because of an oversight on the part of the finance company, but, except for a cram down situation or reaffirmation, secured auto loan balances go to zero upon discharge. Under normal circumstances, you still have to pay the entire balance due on an auto loan, regardless of the discharge in a Chapter 13, in order to secure the title, or face repossession. So your credit score will be somewhat lower after discharge than before even if the finance company made a mistake.

[Motivatedx3]

Updated #3...the attorney filed another motion requesting a hearing be held on the matter I'm hoping this would force the finance company to make a decision soon

[justbroke]

Updated #3...the attorney filed another motion requesting a hearing be held on the matter I'm hoping this would force the finance company to make a decision soon

The hearing will generate a demand to respond, in the least, or an order that will compel the lender to choose with a certain date (timetable). Even better, the Judge could find that the lender is in contempt and levy sanctions for not choosing, but that is probably not likely.

[Motivatedx3]

thx justbroke, that's what I was hoping for (a specific date)

[Motivatedx3]

Update #4...a hearing has been scheduled! I'm praying this case doesn't go that far. Seems like it would be easier if the company signed over the title before the hearing.

So ready for this to be over with it