I had two four wheelers financed through Honda Financial. I had (stupidly) financed them for a friend. He got in a bind and was unable to pay for them. Since they were in my name I was responsible for them of course. My husband has been out of work for a while and we were unable to pay for them. I contacted Honda several times about voluntarily giving them back but was told that they did not want them. Honda eventually charged off my account and turned it over to a collection agency. I contacted the collection agency about giving the four wheelers back and was again told that Honda did not want them. I was told I could sell them and settle the account. I did sell them with the intention of settling the account but ended up using the money to pay bills. I recently filed a Chapter 13 and one week after filing I received a letter from Honda stating that I need to pay them over $1800.00 to get my account caught up and start making my monthly payments or surrender the property. What? I TRIED to surrender the property several times and was told they didn't want it. Now they want it back? I am a little worried and not sure what will happen. I did not list this as secure debt on my bankruptcy because I mistakenly thought it was not secured any more due to the fact that it has been charged off and sent to a collection agency. What now?
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Are you pro se?
Were the 4 wheelers titled?
Did Honda take a security interest in the 4 wheelers?Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer. -
No, I have an attorney. I just received the letter in the mail today. I will be contacting my attorney on Monday but I was hoping to get some information before then. I am not 100% sure but I believe they were titled.Comment
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Well, if they were titled, were they titled in your name or your friend's name? Did you simply co-sign the note or were you the primary?Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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They were in my name. I was the primary. They were bought in my name on my credit.Comment
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Would need to know whether they actually had a security interest in the 4 wheelers. If they were titled, was the lien recorded on the title? If it was, how did you sell them without clear title?Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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Assuming they actually had a security interest, then from your perspective, about the worst thing that could happen is that the creditor could seek to have the debt held to be non-dischargeable since you sold the secured collateral with actual knowledge of the security interest and did not apply the proceeds to the debt.
While selling secured collateral is a misdemeanor in most states, I've never seen anyone prosecuted for it.Pay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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The people I sold the four wheelers to were not interested in the title. I was honest with them and they bought the four wheelers knowing the circumstances. I figured as much about the debt being nondischargable. Honda stated that they may act to have the automatic stay lifted. Thank you so much for your prompt information! Really helpful!!Comment
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Kind of silly onthe part of buyers of the 4 wheelers, not caring about the circumstances. They will care before it is over, my guess. The TT will certainly want to know WHO you sold them to, along with an address, etc. Easy enough to go pick them up; recovery. Pretty much what is going to happen, I would say, in addition to you having to fight Honda over this debt.Originally posted by michelle9576 View Post
Do you happen to have any documentation of your attempts to return the vehicles to them? It may help if you could document dates, times and their response that they didn't want the vehicles back.Comment
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Well Honda can't double dip. If they're successful in recovering the balance from Michelle, then they can't also seek return of the collateral. She's the easier target and they'll probably seek recovery from her first. Those 4 wheelers are probably well south of the Rio Grande.Originally posted by Mensa1 View PostPay no attention to anything I post. I graduated last in my class from a fly-by-night law school that no longer exists; I never studied or went to class; and I only post on internet forums when I'm too drunk to crawl away from the computer.Comment
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