Bank won't accept surrendering the vehicle

[AngelinaCat]

The 'municipality' is whatever governmental agency has jurisdiction. If you, or the bank you plan to leave this vehicle at, are in an incorporated area, then it will be the city or town government. If you, or the bank are in an unincorporated area, then it will be the county government. Each of these entities will have zoning codes and ordinances in place that address the issue of 'abandoned vehicles'. Some will list the fees and penalties associated. You may wish to go online and see if you can locate your local ordinances.

Good luck!

[1richard1]

I'd guesstimate even to tow the vehicle, store it can't be more than $1,500 for say 30-60 days. So, if I understand correctly if the lienholder for the vehicle refuses to then pay the fees, the car would go lien sale right? As the registered owner, I'd also be notified as to the auction date/time/location/starting bid right?

On Monday, will have our attorney communicate with the banks recovery manager. Also, any draw backs in having the attorney file a Motion to Redeem, 21 days for lienholder to accept our offer and release title? I sense the bank is simply cutting their losses by having the vehicle stay parked out front our house. Prefer to get this resolved while within the BK process, not wait till after discharge. Would think our BK attorney involvement, motion to redeem would move this along. We just want closure to it, one way or another.

[AngelinaCat]

Try searching at municode.com. Without knowing your area, I just picked Belmont, CA at random. Here is what Belmont's ordinances say:

http://library.municode.com/index.aspx?clientId=10411&stateId=5&stateName=California

ETA: Well, it isn't going to let me post directly to ch 27, which is what you want. On the left hand side of the screen, scroll down the Table of Contents to Chapter 27 - WRECKED, DISMANTLED OR INOPERABLE VEHICLES and click on that.

The municode works the same for most towns and cities. Not all towns and cities codify and upload their ordinances.

[debee]

On Monday, will have our attorney communicate with the banks recovery manager. Also, any draw backs in having the attorney file a Motion to Redeem, 21 days for lienholder to accept our offer and release title? I sense the bank is simply cutting their losses by having the vehicle stay parked out front our house. Prefer to get this resolved while within the BK process, not wait till after discharge. Would think our BK attorney involvement, motion to redeem would move this along. We just want closure to it, one way or another.

The problem with the bank cutting their losses by refusing to repo, and also not giving you the title, is that it's against the bk code. You have the legal right to surrender and if they don't want the car, they need to give you title so you can dispose of it. This is a bk court issue.

If they are refusing and if they continue to refuse, your attorney can go after them not only for title, but also to pay his fees, and your actual damages and punitive damages as well because they are in violation of the stay (now until discharge) or the injunction (what the stay becomes post-discharge). They are violating the stay so long as they are trying to extort money out of you in order to release the lien so you can junk the car.

However, if the car is still property of the bankruptcy estate you can't dispose of it anyway. And the bank can't take it. That's another reason why you need to talk to your lawyer to determine where you are in your case and whether the stay has been lifted or the trustee has abandoned it.

I read another case on the forum where the debtor redeemed theirs for $1 just so they could junk it. I wouldn't pay more than that.

EDIT: In case this is causing confusion, I wanted to say that just because you elected "surrender" doesn't mean it is "surrendered". If the car was new and running well and you had elected "surrender", the lender would not be able to just come and get it. In fact, if the lien on it wasn't perfected, the trustee could keep the car and sell it. This has happened to forum members before. Although you intend to "surrender" the car, there is a process.

[1richard1]

Spoke with the bank, "bankruptcy dept." They've agreed to pick up the surrendered vehicle, reason being they said the parts off the car are worth closer to $4 k. Notes on the account indicate the car can be sold to a salvage yard, car can be parted out. So, bank has called a tow company to pick up the car.

Here's another thought, what about my attorney filing a Motion of 722 Redemption. I have the work order for repairs needed on the car from a local General Motors dealership, directly from the "service manager." All 100% verifiable too. If filing a 722 can the BK "trustee" cram down the value to say $500, force the lender to release the title? Do I need to have the car appraised too? Or would turning in a repair work order be sufficient? How long after the attorney files the Motion of 722 does it take for the trustee to respond, make a determination, or do I need to attend a hearing to discuss the car matter? Also, I would not need a loan for the cram down if say only $1,000. If possible, can give the $ to the attorney and have him wire transfer it to the bank. Of course this would all be contingent on the outcome from the BK Trustee, "722."

Hopeful someone here has some experience or input with a 722, based on my situation.

[1richard1]

Tow company arrived, behalf of the bank BK dept., car was voluntarily surrendered. All handled, done. On my credit report car loan shows as, "included in BK7, $0 Balance, $0 Payment.

[AngelinaCat]

Congratulations!!!! After all you have been through with that vehicle, this is really great to read.

[debee]

Agreed. Glad it worked out for you.