Car surrendered during BK. Can owner have the bank return the vehicle?

[1richard1]

Agree big time, happy it has been handled! Am I correct that the bank can not even sell the car while active in BK7? Meaning, car sits in an impound lot as car can't be sold till after the BK is closed and discharged. I heard that the bank can file a motion with the trustee to sell the car, yet bet all this takes quite awhile.

Curious, with the car being surrendered during the BK can an owner have the bank return the vehicle? Just curious, as I have a friend whom is an auto mechanic interested in buying the car. He can fix the damaged engine, yet only interested if the bank would return the car at much reduced agreed upon settlement. Can my lawyer and the bank even do a settlement for title while in BK, my guess probably not. I do have the invoice for engine repairs, inoperable vehicle from the General Motors dealership, "service manager." Was going to fax these to the bank bk dept, next week.

[AngelinaCat]

Hi Richard. Since this is a new question, I moved your last post to a thread of it's own, as that members can more readily see it and respond.

I have to say that after all the worry and work you did with getting rid of this Albatross around your neck, WHY you would ever want it back. If your friend wants it, I suggest that he go to the salvage yard and see if he can purchase it. You should have the location that it will be towed to in your paperwork. If the bank thinks the vehicle is 'decent' enough, they may set it for auction, but this is no guaranty. Remember, you said it was not operable and would cost mega-bugs to repair--if the repairs would hold.

[1richard1]

Agree with you completely. Friend is willing to give me a little $$$ if he can buy the car, either now or at auction. Neither the tow company nor the bank BK dept. would advise as to the name of the salvage yard. I have the name, address to the tow company yet when the car was surrendered no paperwork was provided.

Is it common for a car to be surrendered, yet tow company does not provide any receipt, documentation?

My #1 concern was not having a release of liability with the DMV. I did ask the repo tow driver, advised no paper work necessary and repo guy knew it was a voluntarily surrender, said he works with the bank daily, one of their accounts. The tow driver also looked at the engine, cracked engine block, engine partially disassembled too.

The actual retail value of car is approx. $14,000, yet dealership service manager documentation shows over $9,500 (engine repairs) The BK dept. told me earlier in the week, only reason the supervisor agreed to pick up the car is that they can get at least $4-$5 k for the car, having it parted out for parts. Car is a 2006 Pontiac Gto, LS2 Vette engine.

Engine alone sells for $7,000, over $6,500 even on Ebay. Add in another $1,500 to remove the engine, plus for re-install of new engine, plus retuning the car, labor hours and so forth it was over $9,000. Also, the clutch was on its way out and transmission was slipping bad in 1st and 2nd gear. So, easily over $9,000 plus in repairs.

Don't know how bank can sell the car AS IS, without disclosing all the issues. That's why car was surrendered, yet have a friend willing to pay $3-$4 k to buy it back, max. Don't know if this is possible during an open BK proceeding though, nor if offering the cash upfront they'd release the title now. I doubt it.

[AngelinaCat]

Hi 1richarged1. I worked over your post a bit so as to make it easier to read.

I really cannot answer your questions at this time as I need to research, and I am up WAY past the bedtime. But if your friend wants the vehicle, you and he need to find and get to the salvage yard ASAP. When we towed my '93 Pontiac in, it was crushed that very day.

[1richard1]

Yes, easier to read and thank you. Hopeful for some input on this situation.

Attorney said to just give up the car, based on the cost factor. Never missed a payment on the car in years, was current on payments even into the BK. In fact, reviewed the payment history and the banks has fully recovered their initial principle balance extended when car initially finance. What they've lost at this point is about $13,000 remaining balance, "interest only" off the initial sales contract. Of course vehicle surrendered after the engine ceased up, cost factor involved.

When I spoke with the bank BK dept. they said they'd not even agree to a settlement, release of title till "after" the BK is closed. Bank still does want to see the dealership service manager documentation, told they'd give it to a manager in their BK dept. to review. Seems like all the bank cares about is getting more and more $$$ off me. Considering the circumstances, thought I'd at least recoup a little $$$ if my friend can buy the car for cheap, bank would release title to it. However, bank would not even advise as to where the vehicle is located, nor any settlement info. provided till after the BK.