Vehicle loans after discharge

[BigJilm]

My case began as a Chapter 13 in March 2019, and converted to a Chapter 7 in August 2019. Going into the bankruptcy I had two vehicles, both of which were still being financed. My intent was to keep both vehicles, and they were both rolled into my Chapter 13 monthly payment. After my case converted to a Chapter 7, my attorney sent me a reaffirmation form to complete and sign for vehicle #1, which I did. I indicated that I wanted to reaffirm both vehicles, and my attorney replied that they hadn't received anything from the second lender. Several months passed, and my discharge was issued in February 2020. I had never reaffirmed the second vehicle. In hindsight, I'm glad it worked out that way because I have reevaluated the decision to keep that vehicle and I believe it's in my best interest to get rid of it. So here are my questions:

1. For vehicle #1, which I did reaffirm... it has been 2 months since my discharge and I have still not heard anything from the lender. I have not made a payment on the vehicle in a year, since I filed for Chapter 13 in March 2019. What am I supposed to be doing at this point? Will they contact me? Or do I need to reach out to them to resume payments? My online account with them has been closed since I originally filed last year.

2. For vehicle #2, which I did not reaffirm... what are my next steps here? This lender actually did get a couple of payments from the trustee while my case was still chapter 13, but after I converted to chapter 7 it was never reaffirmed. Will they be contacting me to retrieve the vehicle? What do I need to do at this point?

Any and all advice and suggestions appreciated!!

[justbroke]

1. For vehicle #1, which I did reaffirm... it has been 2 months since my discharge and I have still not heard anything from the lender. I have not made a payment on the vehicle in a year, since I filed for Chapter 13 in March 2019. What am I supposed to be doing at this point? Will they contact me? Or do I need to reach out to them to resume payments? My online account with them has been closed since I originally filed last year.

I would contact the lender, or try to figure out if they sold the claim. Many of the creditors, in a Chapter 13, actually sell the claims to a third party.

2. For vehicle #2, which I did not reaffirm... what are my next steps here? This lender actually did get a couple of payments from the trustee while my case was still chapter 13, but after I converted to chapter 7 it was never reaffirmed. Will they be contacting me to retrieve the vehicle? What do I need to do at this point?

This is the same thing as the first vehicle. There's no telling who owns the loan at this point without looking at the claims filed. It may or may not be the original lender. For example, both my vehicles with my bank were sold/transferred to Ascension Capital. I had to deal with Ascension.

[BigJilm]

Thank you for the response, justbroke. I'll reach out to the original lenders and see what the deal is. When I look at my credit report I don't see the lender for vehicle #1 appear at all as one of my accounts, and I also do not see any new accounts that I don't recognize. For vehicle #2 I do see the original lender listed in my credit report, and it is noted that it was discharged in bankruptcy.

Did you keep your vehicles or turn them in? I'm just trying to get an idea of the normal process for turning in a vehicle when the loan has been discharged. I initially figured they would be coming by in the middle of the night trying to repossess it, but after reading a bit online I see that the opposite is frequently an issue... many lenders in this situation seemingly refuse to take the vehicle back, or at least make it very difficult.

[justbroke]

I kept my vehicle, but I also continued paying for them or refinanced them (into a 722 Redemption Loan). Yes, some do just simply forget or don't want to be bothered with repossessing the vehicle. However, that doesn't bode well for a constantly-looking-over-your-shoulder life.

[shipo]

I kept my vehicle, but I also continued paying for them or refinanced them (into a 722 Redemption Loan). Yes, some do just simply forget or don't want to be bothered with repossessing the vehicle. However, that doesn't bode well for a constantly-looking-over-your-shoulder life.

In cases where the lender doesn't come after the car and yet doesn't demand payment, how does one dispose of the car with no title?

[BigJilm]

Oh, I definitely want to return the vehicle to them. I have no interest in hanging on to it and living a "constantly-looking-over-my-shoulder life," as you alluded to. There are some maintenance items needed too, and I have no interest in putting any money into a vehicle I am not going to keep. I want to get it back to them and get another vehicle to replace it. And I have the same concern that shipo raised above... that's why I am hoping I won't have any issue returning the vehicle to the lender.

The only thing now is the timing. Given the current quarantine situation, it's not really a good time to go shopping for a new car. So I'll just sit on it until that situation improves. I'm staying home and the vehicle is sitting safely in my garage anyway.

[justbroke]

In cases where the lender doesn't come after the car and yet doesn't demand payment, how does one dispose of the car with no title?

There were some cases in which the debtor re-opened the Chapter 13 to demand that the creditor release the title (Motion to Compel). A famous case was with Ford Motor Credit (FMC). FMC didn't want to release the title without payment, but didn't ask for payment. The catch-22 was incredible and FMC was later told to release the lien.

The only thing now is the timing. Given the current quarantine situation, it's not really a good time to go shopping for a new car. So I'll just sit on it until that situation improves. I'm staying home and the vehicle is sitting safely in my garage anyway.

yeah, I don't know what's going to happen with many things.