Ever heard of this in Bankruptcy??

[fire228]

I filed for Bankruptcy in Feb 2012 and it was Discharged in July 2012. Included in this case was Credit Cards, a Car and a Motorcycle.

It had been about 7 months since I filed and 3 months since it was discharged and I still had the Motorcycle.

It was financed through Navy Federal Credit Union so I called them today to see when they had plans to pick the bike up. The guy does some research and comes back and says that they never filed a lien on the bike and since it was discharged it was to late now and that the bike was free and mine to keep because they no longer had any interest in it.
So I called back 3 more times and talked to 3 different people and they basically all said the same thing! They said it was really rare, but things like that happen time to time.

So now I have a $14,000 motorcycle for FREE??

I'm still scared though to ride it or try to sell it.....What should I do?

Anyone ever heard of anything like this??

[bcss]

Whats the title say? Pink slip or whatever Florida calls the title certificate. No lien holder then congratulations!

[fire228]

No, the Title is free and clear to me.

The bank said they had no interest anymore and it was there fault for not completing things on there end. I have just Never heard of anything like this before and cannot even find much info about it on the internet!!

I just don't know what to do....Should I just keep the bike in the garage and do nothing? Should I reregister it and start riding again? Should I sell it?

I'm just lost

[DebtEnder]

Get it street legal and enjoy.

[justbroke]

Wow, I can't believe the Trustee let that slip. That's a lot of money in Florida! In the end, if NFCU didn't file a lien, it is unsecured debt (period) and is discharged (period). It won't matter how many times you call them.

If you are unsure, go to the DHSMV's website and pretend that you need to get a copy of your registration. Once you get through all the security questions and address updating, you can see if you have an "ELECTRONIC" lien on that Title/Vehicle by looking at the section near the bottom of the screen.

If you want your title, you can have it PRINTED right from there and mailed to you.

[despritfreya]

The REAL questions is. . . Has your case been CLOSED?

As JB alludes to, the Trustee should have, could have, but did not pick up on the failure of the creditor to properly perfect its lien. My position would be that he/she did not do his/her due diligence and if the case has been closed, since you were unaware of the issue, the asset has been abandoned. Are you under a duty to notify the Trustee of this new development? I am not sure. Taking the “high road”, the answer would be “yes”.

If the case has not been closed, the asset is still property of the estate and, if I were your attny, I would advise that you are under a duty to notify the Trustee of this development.

Regardless, my advice would be that you do not sell the motorcycle for at least one year after your case has been closed.

Des.

[HHM]

JB as the best practical advice, verify it with the DMV.

As Desp points out, not really sure what needs to happen. If the case is still "open" you need to disclose. If the case is closed...grey area. But I would probably go on the side of not disclosing. It is not as if you hid the ball, I assume your schedules listed the motorcycle, accurately listed its value, listed the debt as secured, and identified the appropriate creditor. You believed there was a lien and through no action or knowledge of yours there simply wasn't; that is not any type of fraud. Now, if you knew or had reason to know that there was no lien, but listed it as such, that would be a big problem.

You probably need to discuss this with your attorney.

[keepsmiling]

Every once in a blue someone files a 13 and few or no creditors stake a claim.
They hit the jackpot.
Sounds like maybe you did too
Good luck, hope it turns out that way.