Bank won't accept surrendering the vehicle

[1richard1]

We live in CA, already had our 341 hearing and spoke with our attorney about "surrendering" the vehicle as part of the BK 7. Called lender, tow was scheduled to pick up the car and have it surrendered. Reason being, vehicle in not operable, needs a new engine which is costly. Tow company called, advised the lender cancelled the tow and to contact the lender.

Spoke directly with the BK department, advises as follows: "their recovery manager for CA has decided the cost factor for recovery is too high, that they don't want the car back." However, that they will not release the title to the car either. Advised them the vehicle has been sitting out in the street, not operable for nearly 2 weeks. We're surrendering the car, do not want the car. They said the cost factor for a new engine is high too, tying to talk with us into a settlement. Told them at this point either come pick up the car, or send a mechanic to come look at the car. We're not going to pay and be towing the car back and forth to mechanic shops.

What would you advise? Leave the car AS IS, banks problem? We do live in an HOA community, I can have the manager have the car towed. At that point the bank would be notified the vehicle was towed.

[niko]

what type of vehicle is it? worth to fix it? You should give us detailed information about the vehicle.

[1richard1]

2006 Pontiac (Repair costs are over $9,000)
Vehicle is not operable, must be towed
Dealer and independent mechanic both looked at vehicle.

I called the lenders BK dept. back, advised them having AAA tow the vehicle to their nearest bank location. Will give the monthly statement with all the information to an employee, along with their direct phone # to their BK dept., along with the keys to the car parked out front their bank. Told them this would
be now, on phone with AAA now. I was on hold, BK rep. spoke with their supervisor, advised me the vehicle would be picked up today. Told me know need to have car towed to their bank, they'll have a tow company pick it up today. I replied okay, yet if not first thing in the morning their car, being they're the owners on title would have it towed by AAA to their bank.

[debee]

Good for you, 1richard1. Nice strategy. Keep us updated!

[sh9730]

Im trying to give a WORKING 2010 vehicle back and Cap One still wont take it until after my 341! They claim since it is property of the estate they have to wait for the trustee to abandon it (it is very upside down). I signed a form saying it was ok to get car, my attorney signed, but they wont do it.

So, another month of free car (well insurance)....maybe more...who knows!

[1richard1]

Well, tow truck never showed up. Called the tow company, bank never even called them back. My guess is being the vehicle is not operable requires over $9,000 in repairs, bank just does not want the car. I've called the banks BK dept. a few times, basically advised they don't want the car. Banks CA recovery manager wants me to make a settlement offer on the car. Told them $1,000 yet they now wants faxed documentation from a licensed mechanic or dealer. I told them to send out their own mechanic, come look at the car. It has been parked in the street for nearly 2 weeks, key left in the ignition, doors unlocked, no insurance on the car. I told them to fax me or the attorney a written settlement offer, in exchange release of title. If not, then will have the car dropped off somewhere that does not allow over night parking.

Whom would be responsible for the tow fees, impound fees?
Me, the registered owner with the DMV?
Or, the lienholder?
My "assumption" is the tow company and impound yard would attempt to come after both me and the lender, right?

So, ultimately how does someone surrender a car if the bank will NOT pick it up???

[1richard1]

What about my attorney filing a "Motion to Redeem" with the trustee? Say we offer $500 within the offer, bank has 20 days to accept the offer, provide written acceptance, wire instructions, release of title. If they deny the offer, then what about having the vehicle towed to the nearest bank branch, hand car keys, account statement (account #, BK dept. phone #).

Concern, whom is responsible for tow, impound and storage fees? Me, the registered owner to the vehicle?

[debee]

Why not wait until your discharge when the permanent injunction replaces the automatic stay.

At that time, if they still have not picked it up and if they are telling you that you have to pay to release the lien so you can junk it, they will be in violation of the permanent injunction.

I don't know how the 9th circuit courts have been ruling on this and it's too late for me to research it now, but the 1st circuit ruled in the debtors favor in a case like this. See here.

Might be a good idea to discuss with your attorney.

EDIT TO ADD: The lender can't force you to redeem or reaffirm. You have the right to surrender it. If you were going to offer them any money to redeem/get the title, it should be nominal. Like $1.

[helpmeout]

What about my attorney filing a "Motion to Redeem" with the trustee? Say we offer $500 within the offer, bank has 20 days to accept the offer, provide written acceptance, wire instructions, release of title. If they deny the offer, then what about having the vehicle towed to the nearest bank branch, hand car keys, account statement (account #, BK dept. phone #).

Concern, whom is responsible for tow, impound and storage fees? Me, the registered owner to the vehicle?

I would offer nothing or only the amount that you will get for junking it. You don't owe the debt. Do exactly what you told them you would, tow it to one of their bank branches and leave it. Be sure to take the license plates so that you can return them to the DMV.

[1richard1]

Ok. Say today vehicle is dropped off in the banks parking lot, keys handed to a bank employee. Vehicle gets towed, impounded, storage fees. At that point can the tow company, impound company send letters demanding payment from me??? Or would the tow company simply notify both the registered owner and lienholder as to the vehicle being sold at lien sale? So, in this instance can the impound yard sell the vehicle although not on title?

On Mon., will call the bank B.K. dept., document the account as my attorney offering $500, transfer of title. They'll likely refuse, as loan within the BK Stay Process. Yet, my attorney can then file a Motion of Redemption, say for the $500, force bank to accept or decline. My thoughts, once attorney involved they will communicate with him.

[helpmeout]

Since you are the owner of record, the municipality would come after you.

You are offering too much money for a discharged debt. You won't be able to donate it without them releasing the title, but you can look into taking it to a junkyard and letting the bank know where they can repossess the vehicle. But you aren't paying them anything.

[AngelinaCat]

You still have to have the title if you have it taken to a junk yard. At least that is how it works here in Florida. When we towed my '93 Pontiac in, I had to surrender the title to the junk yard.

[debee]

Since you are the owner of record, the municipality would come after you.

I was thinking the same thing. All kinds of fees can then be added to the towing bill - fines, storage, etc. AND it would be a debt that you incurred post filing so you would be stuck with it.

[1richard1]

Can you elaborate, municipality?

Say vehicle is towed, impounded the salvage yard has to notify the registered owner and lienholder. After 30 days or so can't the salvage yard sell the vehicle at a lien sale? Correct me if I am wrong, yet having the vehicle towed away releases my liability, part of the BK 7. Further, up to the bank to pay to recover the vehicle or allow it to be sold by the salvage yard.

[debee]

What would the impound yard get for a car that doesn't run and noone -- not you and not even the lienholder -- wants?

The difference between that paltry amount and whatever it costs to tow, store, etc., will come back to you in the form of a bill that you can't discharge. It will come to you because you're the registered "owner". You remain the owner until the bank either releases the title, or repo's the car.

Your lender can't refuse to repo the car AND withhold title (unless you pay). That is a backhanded violation of the permanent injunction and more than one court has ruled accordingly. You need to talk to your attorney about how to proceed with this and what the timeframe will be according to the particulars of your case.