Auto loan question after BK

[mgrwarner]

Hello,

Somewhat strange situation here. My Chp. 7 BK was discharged last September.

I have a truck loan that was discharged then. The balance as of today is 1600.00. Not much.

I received a letter from Bank of America 2 years ago stating my truck was paid in full and the title would be sent, (before the BK even began). Bank of America had signed over the title for this truck and the state (Washington), sent the actual title with my name as legal owner and registered owner.

I figured this action was an error on BOA's part and have continued to pay on the loan ever since then even though I have the title.

During the BK, I consulted my attorney about this, and they didn't know what to think about it. So I continued to pay...

Ok, I recently purchased a new truck and bought through a dealer. I showed the finance guy the title for my old truck and he suggested that since the debt for the truck was discharged and I have the title in my name as legal owner, I should just trade the truck in and put that towards my down payment. I did.

Now, having a little more time to think about this.... I traded the truck in and I am no longer the legal owner of the truck. So if Bank of America comes back after I stop paying on the old loan, I won't have a vehicle for them to repossess. Are they out of luck or is this stupid on my part?

Should I just continue to pay the old loan?

Also, this loan was not reaffirmed.

Thanks in advance.

[CATCHMEIFYOUCAN]

I have a truck loan that was discharged then.
Should I just continue to pay the old loan?
Also, this loan was not reaffirmed.

I don't understand why you would continue to pay a loan if the truck was discharged? AND you received a statement stating the loan has been paid off? Am I missing something here? Maybe others will chime in and be able to figure it out.

Now, having a little more time to think about this.... I traded the truck in and I am no longer the legal owner of the truck. So if Bank of America comes back after I stop paying on the old loan, I won't have a vehicle for them to repossess. Are they out of luck or is this stupid on my part?
Should I just continue to pay the old loan?
Also, this loan was not reaffirmed.
I received a letter from Bank of America 2 years ago stating my truck was paid in full and the title would be sent, (before the BK even began). Bank of America had signed over the title for this truck and the state (Washington), sent the actual title with my name as legal owner and registered owner.

Sounds like to me they are shit out of luck, you have full proof the loan is paid off in full! You HAD the title and no longer have it due to trading in the truck. If they were to take you to court, sounds like they don't even have a case. I honestly would play dumb about the whole thing, keep the statement safely filed in case you need PROOF that your truck was paid off in full. And just sit tight and ENJOY THE RIDE - LITERALLY !

But thats just me, Catchmeifyoucan

[CindyLou]

Sounds like BOA owes you money!!!!!!!!!!!!!!!!!!!! I would call and ask for it back!

[mgrwarner]

I don't understand why you would continue to pay a loan if the truck was discharged? AND you received a statement stating the loan has been paid off? Am I missing something here? Maybe others will chime in and be able to figure it out.

Yep, that's exactly what the finance guy was saying. But, it was a clerical error on the part of BOA stating my loan was paid in full, when it really wasn't. So what happened is, I got a letter then (2 years ago), saying thank you for paying off my loan and the title would be released in my name. I received my title from Washington State 30 days later.

In the meantime, on the next statement (2 years ago), the balance showed a payoff, then there was a reversal to that payoff. I think it was too late for BOA to correct the title issue, so they never responded back. As far as the State is concerned, it was my truck, legally.

Then last year I filed for BK and this loan was included as a discharged debt. BOA never contacted me to reaffirm, because I think they realized I have the title.

So that is where I am at. Do I stop paying on that loan and just wait and see, or should I be honorable and pay it? I don't have a vehicle for them to reposses and the debt is discharged, what could they do?

[lrprn]

Do I stop paying on that loan and just wait and see, or should I be honorable and pay it?

This sure is a situation you don't see everyday! The only way to make absolutely certain that nothing bad happens to you is to continue to pay off the loan.

I don't have a vehicle for them to reposses and the debt is discharged, what could they do?

The problem is that the car loan wasn't wiped out when you filed - it was a secured loan. If you stop making payments now and BOA decides to pursue you for the remainder, then since there's no collateral to collect, I'm wondering if they could then try to garnish your wages? Hopefully someone here will know that answer. Since the amount you have remaining is fairly small, I doubt BOA will be anxious to pursue you, but there's no way to know for sure.

If you filed with a lawyer, what does he/she have to say about this?

[mgrwarner]

If you filed with a lawyer, what does he/she have to say about this?

I did file with a lawyer, and at that time they thought it was strange I had the title... But they didn't give me any explicit advice on what to do. I did just continue to pay it because I didn't want to lose my vehicle.

You do bring up a good point, and one I have been struggling with. There is no collateral left so what can they do? I thought when a debt was discharged (at least remaining in this case), then they can't come after the money, just the property.

It's confusing. I would like to be done with paying them, but I don't want to make matters worse.