Bank saying that I must fully insure collateral vehicle even though I don't want it?

[debtjumper]

I am about two and a half weeks until my discharge (60 days). I got a letter about two weeks ago from my bank saying that they have received information that the vehicle I have is does not have collision insurance on it.

For the last couple months, I have parked the vehicle and got storage insurance through my insurer. The bank has threatened me to provide proof of collision insurance or they will automatically charge me like $800 for their own insurance.

I did not re-affirm on the vehicle during my 341 --- I don't want it. It is a POS that was getting more problems everyday I drove it.

What should I do? If they hit me with the $800 charge could I tell them that I never received such letter?? (I have never received one certified letter from any of the creditors when they have tried to contact me)

[Pinktiger]

Call your attorney, if you have one. If you don't, call the bank and remind them that you filed bankruptcy, have not been discharged, and consider their letter to be a direct violation of the automatic stay. You also need to remind them that you don't want the car, have not reaffirmed the debt, and are waiting for them to come get it.
You might also consider contacting your trustee, if you don't have an attorney.

[debtjumper]

I just got another letter from the bank telling me to get full insurance on the vehicle....yeah that went straight into the shredder!

Finally received my Discharge letter dated May 31st! After it took 6mos. for the 341 it took under 60 days for the Discharge! Lets see how long it takes to "close" the case.

[SinkingFast]

Don't let the Bank continue thinking you're gonna keep the car. You're not under the protection of the BK Court anymore. You don't wanna create a new bill.

Even tho you did not reaffirm, as long you are in possession of the car, the original terms of the loan apply. Same term. Same monthly payment amounts. etc. So if the loan agreement says you have to have collision insurance, or they have the right to provide it for you if you don't provide it yourself, then they have the right to bill you for it.

If you don't want to keep the car, call the Bank, tell them you filed BK, give them your case number, and arrange to return the car to them or their representative.

[debtjumper]

Interesting; I called them last week and asked them when they are going to pick this $hit box up...she said that they haven't received the discharge notice yet. I beg to differ.

[debtjumper]

Just an update; they told me to keep the vehicle even though I believe I can get about $4k for it after about $800 worth of work. I guess it really isn't a POS since I now hold the clear title in my hands and I have the chance to make some "sweat equity" out of this beast.