Stolen ATV

[sedwick]

I'm looking to file chapter 7 pretty soon. I have an ATV that was stolen from me last year, I still owe about 4k on it. Will this be discharged?
It was financed with a revolving acct thru HSBC at 18%.
Thanks,jd

[mountanddo]

I am guessing that you are going to need police reports and such to prove that it was actually stolen. You should be ok then.

[frogger]

Your financing most likely required for you to provide insurance on the ATV. If you were required to do so, then you could have a problem.

[btbeme]

To Frogger's and mountanddo's point, if it was stolen, the police would need to be involved, and a financed ATV would have to have insurance. That insurance payout for a stolen item would also factor in to your pre-filing assets.

If you have the police report and a claim processed by the insurance company, and the claim money was paid to HSBC, and that excess claim money paid to you, if any, has been spent on exempt items (and receipts to prove it), I'd say that the Trustee will probably have no more questions than that. Kabang. Debt discharged. Maybe.

Should any of those components be missing, I'd expect a lot of questions and possibly some additional action from the Trustee and/or HSBC. I'd bet that you would be on the hook for the amount of the loan, plus fees, after discharge. That would be the rosy-colored scenario.

See, having an asset on your record and listing it as "stolen" will force the Trustee to run out every possible legal ground ball on that item, until which time he/she is 101% satisfied that it is not a recoverable asset, or (gasp) a fraudulent claim. That is their job, in a nutshell. And Trustees have a lot of room to maneuver here, and a lot of data available to them, and a lot of penalties they can levy to get to the bottom of the issue. Having all the documentation ready for them to see that YOU have run out all the ground balls for them, before filing, will make them less likely to put that tight smile on their face and remand your file over for a 2004 conference roto-rooting. The door on the other side of that conference is a door you don't want to go through, no way nohow.

So get your ducks lined up properly on this one and save everyone involved a lot of hassle.

[AngelinaCatHub]

On a revolving charge account at 18% is it usual to put down an item as chattel? Did you sign a specific document at purchase or just use a credit card? If stolen yes police report. It's a bit late now to make one but you could still go to the station and report the serial number.

My story is, I had two beater cars I backed a 5K loan from American General. Tough cookies tried to slip in a reaffirmation on me by mailing the bland to the Trustee. What nerve. Anyway, the one care blew the engine. I left it at the shop for the repair estimate. The other caught fire in my yard, (don't ever prime a fuel injected car when it is hard to start, makes a bad burn spot in the grass). So, they had secured debt, I had no security as both were hauled to the junk yard. Never went after me, was discharged as unsecured. 'Hub

[Guest123]

Financed quads or other UTV are not required to be insured.

Years ago I had a car that was stolen, stripped and burned. Insurance didn't pay off the entire amount owed and when I filed CH7 the remaining balanced was discharged.
If you are claiming it stolen you better have a police report if the lawyer or trustee ask.