Surrendering a car in Ch. 13 - question about creditor repossession

[cspa522]

Has anyone ever surrendered a car in Ch. 13 and had trouble with the creditor actually coming to take the vehicle and removing it from your property?

We have finally gotten a court date to have our plan amended, and our dead car removed from the plan. Of course it's not until September 26th, and this car has been sitting dead in our garage since April 28th. Anyway, I've heard nightmares about a car being removed from a plan/surrendered, and the creditor deciding not to come and collect the vehicle.

Per my attorney, we can't make them take the car. So my choice is just to leave it sit in my garage for the next 2.5 years until my BK is up and the lien is released?

Any advice would be helpful!

Thanks!

[cspa522]

Anyone?

[kornellred]

The lien will not be released unless you pay for the vehicle in full. If the lien holder does not come to take the vehicle away, what you have is a ton and a half of scrap metal that no one will touch (without the title, which you will never see).

[jcsawyer]

it isnt santander is it? LOL it took them months of me calling them because i finally took the insurance off the vehicle for them to come and pick it up.

[pinkpeanut01]

It is possible to get the lien released and certainly can see the title again.

I did a Ch 7, not 13, but we surrendered a car in our 7 and the lender refused to take it. Ours too was not in running condition and sat in a driveway for almost two years. We begged them to take it. They just wouldn't. Our car was financed through a credit union and was cross collateralized with a credit card. We owed $1,200 on the car but discharged $9,000 on a CC. They wanted $10,000 for a car that was valued at maybe $2,000 but didn't even run. The lender wouldn't even take our calls to try to negotiate a settlement, but they took our attorney's calls, who we re-hired to help us (he charged us for one hour). After negotiating with our attorney, they gave us the title for $940. We sold the car to someone who knew how to get it running, and it's gone. So it might take some work, but everything in life is negotiable, and you can get rid of your hunk of scrap metal. (After some calls, we also found a junk hauler in a big city willing to take it without a title, maybe for a chop shop or something, but we decided the legal route was worth $940.) You CAN get a title without paying for the vehicle in full, but it might not be easy.

jc - That's interesting about Santander. We surrendered a car to them and they came for it within three days of us calling them. They were actually the easiest to work with. They told us exactly what time they were sending the tow truck so we were able to make arrangements and make it look good for the neighbors. LOL I guess it depends on who you get and where you live?

[rdve]

If legal:

Send the lender a letter saying that they have 30 days to remove their property or they will be charged $25/day storage fees until the scrap value of the vehicle is reached, and then file for a mechanics lien to re-title and dispose of the vehicle.

If not, send the lender a letter (registered) that the vehicle will be moved to the public street, the license tag removed and turned into the state DMV. Then it is on the lender to protect their own property before it is stolen or towed by the city.

[pinkpeanut01]

I considered doing this and was cautioned against it because you are then technically accruing new debt if/when it is towed away and kept in a storage yard. I thought I was no longer responsible for it, but I was told different. I can't speak on the accuracy of that advice as I decided not to go that route. It might be worth it just threatening it though, if not actually doing it.

If legal:

If not, send the lender a letter (registered) that the vehicle will be moved to the public street, the license tag removed and turned into the state DMV. Then it is on the lender to protect their own property before it is stolen or towed by the city.

[LadyInTheRed]

The lien holder is not the owner of the car and has no liability for towing or storage or anything else.

Try contacting a charity that solicits vehicle donations. But, don't do that during you BK without clearing it with your attorney.

[rdve]

I considered doing this and was cautioned against it because you are then technically accruing new debt if/when it is towed away and kept in a storage yard. I thought I was no longer responsible for it, but I was told different. I can't speak on the accuracy of that advice as I decided not to go that route. It might be worth it just threatening it though, if not actually doing it.

I would check with your attorney about sending them a letter to either release the lien and surrender the property to you, or to remove the property. If they still will not, and you have a friend who is a mechanic, have him do some work on the car and then file a mechanic's lien for the value of the car.

[cspa522]

We received a lien release and our attorney disappeared!

So, after months and months of waiting, Wells Fargo sent us a lien release on our car. My attorney was supposed to be contacting them about it, because we were all shocked to receive a lien release! The courts ruled that we could give up the car, and that Wells Fargo should come get it. And then we got a lien release in the mail, but they've never contacted us about getting the car. I've been emailing my attorney since November, with no response. I called, and the number is disconnected. I'm going to drive over to her office this weekend...but it poses a new question: What do you do if your attorney skips town? Not saying that's what's happened here, but what if it is?!

[LadyInTheRed]

So, after months and months of waiting, Wells Fargo sent us a lien release on our car. My attorney was supposed to be contacting them about it, because we were all shocked to receive a lien release! The courts ruled that we could give up the car, and that Wells Fargo should come get it. And then we got a lien release in the mail, but they've never contacted us about getting the car. I've been emailing my attorney since November, with no response. I called, and the number is disconnected. I'm going to drive over to her office this weekend...but it poses a new question: What do you do if your attorney skips town? Not saying that's what's happened here, but what if it is?!

Did you try searching for your lawyer on the state bar website to see if she moved? If she skipped town without passing her practice on to another attorney and you need a lawyer before your discharge, you'll have to find another lawyer. Are her fees being paid through the plan? If so, the trustee may know where to find her. You could check PACER to see if she filed a notice of address change.

As far as the car is concerned, if the lender released the lien, they no longer have a right to repossess it. If you want to sell it and you can't find your attorney, call the trustee's office, tell them your lawyer has disappeared and ask if it is okay to sell the car.

[cspa522]

Did you try searching for your lawyer on the state bar website to see if she moved? If she skipped town without passing her practice on to another attorney and you need a lawyer before your discharge, you'll have to find another lawyer. Are her fees being paid through the plan? If so, the trustee may know where to find her. You could check PACER to see if she filed a notice of address change.

As far as the car is concerned, if the lender released the lien, they no longer have a right to repossess it. If you want to sell it and you can't find your attorney, call the trustee's office, tell them your lawyer has disappeared and ask if it is okay to sell the car.

I've checked Pacer, and she hasn't submitted anything. I called the trustee's office, and they show the same contact information that I have. I looked her up on the state bar website, and she's still listed and in good standing. I'm going to have my husband drive by her office tonight on his way home. This is ridiculous. Her fees were paid up front, so of course I haven't gotten the very best service, but I certainly didn't expect her to just disappear.

When I asked the Trustee's office if we can legally sell the car they told me that it looks like we filed everything correctly, and that Wells Fargo willingly sent us the lien release, so we should be able to sell the car, but they can't officially advise us. Helpful.