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Chapter 7 - Surrendered Vehicle

Discuss the legalities of Bankruptcy Law

Chapter 7 - Surrendered Vehicle

Postby Attewell » Sat Dec 10, 2016 1:18 pm

Several years ago I bought a motorcycle from Yamaha, for which Yamaha put the financing on a store creditcard. I stopped making payments in 2008 when suddenly the monthly payment doubled, and I could no longer afford it. Yamaha never contacted me to demand the motorcycle back from me. Apparently they charged off the account and sold it to a debt collector(Oliphant). Earlier this year I filed pro se chapter 7 bankruptcy in New Mexico, and listed the motorcycle as a secured asset to be surrendered. The trustee abandoned the bike, and I did not hear from the creditor. The bankruptcy was discharged as per June 1. What do I do now with the bike? Did the creditor abandon it, or can they still demand it back? Your answer is highly appreciated.

ANSWER: If you haven't heard from the creditor after filing bankruptcy and stating an intention to surrender, I would keep driving it until somoene who PROVES they are the successor to the credit card company demands the bike back.  You might want to send a certified letter to the original creditor seeing if they want the bike back all these years later as a further safeguard.

Thanks for the question.

Lee Horner

Goldstein, Horner & Horner, Attorneys

Tucson, AZ

www.freshstartAZ.info

---------- FOLLOW-UP ----------

Thank you so much for your superfast answer. Is this debt considered secured(since the bike was colleteral) or unsecured(since it was put on a credit card)? I understand that if it is secured, then the debt might not have been discharged, and I am still liable for it, is that correct? The problem is that I really don't want the bike; it's been sitting in the garage for 2 years now and has no tags or insurance. I've tried to sell it(before the bankruptcy), but I owed much more than I could sell it for. So, I would like to sell it, because I could really use the money. Thanks again for your response, it's really helpfull, Richard
Attewell
 
Posts: 47
Joined: Fri Feb 14, 2014 8:02 pm

Chapter 7 - Surrendered Vehicle

Postby Faber » Sun Dec 11, 2016 6:02 am

You will need a certificate of title to be able to sell the bike.  Most likely if it was secured by a loan, the lender has the title and won't kick loose of it with the debt not being paid, but might for $100 or so.

If it is unsecured, you have the right to get a duplicate title from your motor vehicle registry(dept of motorvehicles in ca for example);  then sell it.

If you do not have the title you can't sell it.  Although you can transfer possession to someone else who doesn't care about having title in their name(not likely), you remain liable as the registered owner if something happens on the bike for which the owner is responsible.

I'd suggest getting a duplicate title to start with;  if you can't then make a deal for chump change with the lender to release their lien.  Otherwise, not much else you can do.

Lee Horner

Goldstein, Horner & Horner, Attorneys

Tucson, AZ

www.freshstartAZ.info

PS:  If the lender does have a lien on the bike, your personal liability on the debt was discharged if you didn't reaffirm and it sounds like you didn't reaffirm, particularly since no one came after you.
Faber
 
Posts: 36
Joined: Fri Jan 17, 2014 5:42 pm

Chapter 7 - Surrendered Vehicle

Postby Brodee » Mon Dec 12, 2016 1:39 am

Several years ago I bought a motorcycle from Yamaha, for which Yamaha put the financing on a store creditcard. I stopped making payments in 2008 when suddenly the monthly payment doubled, and I could no longer afford it. Yamaha never contacted me to demand the motorcycle back from me. Apparently they charged off the account and sold it to a debt collector(Oliphant). Earlier this year I filed pro se chapter 7 bankruptcy in New Mexico, and listed the motorcycle as a secured asset to be surrendered. The trustee abandoned the bike, and I did not hear from the creditor. The bankruptcy was discharged as per June 1. What do I do now with the bike? Did the creditor abandon it, or can they still demand it back? Your answer is highly appreciated.

ANSWER: If you haven't heard from the creditor after filing bankruptcy and stating an intention to surrender, I would keep driving it until somoene who PROVES they are the successor to the credit card company demands the bike back.  You might want to send a certified letter to the original creditor seeing if they want the bike back all these years later as a further safeguard.

Thanks for the question.

Lee Horner

Goldstein, Horner & Horner, Attorneys

Tucson, AZ

www.freshstartAZ.info

---------- FOLLOW-UP ----------

Thank you so much for your superfast answer. Is this debt considered secured(since the bike was colleteral) or unsecured(since it was put on a credit card)? I understand that if it is secured, then the debt might not have been discharged, and I am still liable for it, is that correct? The problem is that I really don't want the bike; it's been sitting in the garage for 2 years now and has no tags or insurance. I've tried to sell it(before the bankruptcy), but I owed much more than I could sell it for. So, I would like to sell it, because I could really use the money. Thanks again for your response, it's really helpfull, Richard
Brodee
 
Posts: 43
Joined: Fri Feb 21, 2014 11:44 am


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