Bank Has No Interest In Car And Won't Release The Lien

Dallen3978 · #1 04-09-2008, 10:45 PM

My question involves an auto loan or repossession in the State of: California.

My car was included in my bankruptcy in 2004. I tried to reach the bank holding the lien several months after the discharge to turn it over to them. I was unable to as the bank was sold to another bank and I did not have any contact information for the new bank or even know the name.

This past November 2007 I read an article where it was mentioned that Citizens Bank bought Charter One Bank. I contacted Citizens and told them about my car. They said they had no interest in the car and would not release the lien. They also said they tried twice to reposess the car but where not able to. The problem was they were going to an address I lived at 4 years prior, even though they had my current address on file and the car was parked on the street in front of my apartment.

I would like to junk the car as it is not worth much but the CA DMV won't allow that with an outstanding lien, which I can't get from the vendor.

Citizens Bank wants me to pay $5000.00 for the lien to be released. The car is only worth about $700 - $1000. And, I don't anything near $5000 to pay of the lien.

I spoke to a reposession company about it and offered to pay them the reposession charge just to take the car off my hands. They tried to contact the bank but no one is returning their calls.

What can I do to resolve this? It was suggested by a former bankruptcy judge, now in private practice, that I might want to drive the car to the bank and just leave it in their parking lot for them. If I do this what is the liability for me, especially as it relates to the DMV and that the car is registerd in my name.

Any help is grealy appreciated.

Dan

seniorjudge · #2 04-10-2008, 06:19 AM

If you want the car, you have to sue the bank and the DMV for the title.

It's a declaratory judgment.

It's done thousands of times a day in this country.

The BK judge is not correct.

Dallen3978 · #3 04-11-2008, 10:23 AM

I don't want the car; I want to give it back to them but they won't take it. Can they do that, not take a car back but not release the lien?

seniorjudge · #4 04-11-2008, 10:38 AM

Quoting Dallen3978

I don't want the car; I want to give it back to them but they won't take it. Can they do that, not take a car back but not release the lien?

All they are interested in is the money you borrowed from them.

They don't want the collateral; they want the dough.

Start negotiating.

Dallen3978 · #5 04-11-2008, 10:41 AM

Also, how do I go about getting a declaratory judgement? Is it a filing I can do myself or do I need (or should I have) a lawyer?

I assume, then, that there is a possibility that the judge could rule in favor of the bank and require me to pay what the bank wants ($5000) or could he declare another value to the car.

Dallen3978 · #6 04-11-2008, 10:45 AM

Is it legal to require payment of a debt that was discharged in bankruptcy?

seniorjudge · #7 04-11-2008, 11:40 AM

Quoting Dallen3978

Is it legal to require payment of a debt that was discharged in bankruptcy?

Ask your BK lawyer.

seniorjudge · #8 04-11-2008, 11:41 AM

Quoting Dallen3978

Also, how do I go about getting a declaratory judgement? Is it a filing I can do myself or do I need (or should I have) a lawyer?

I assume, then, that there is a possibility that the judge could rule in favor of the bank and require me to pay what the bank wants ($5000) or could he declare another value to the car.

I do know this much; the bank has no reason to release a lien on a piece of collateral because the debt itself has been discharged.

A lien going into bankruptcy is a lien coming out of bankruptcy.

Dallen3978 · #9 04-11-2008, 02:41 PM

I do understand that. What I don't understand is if they have an obligation to take the car back. I don't expect them to release the lien to me but I would think that they have to take the car back.

Recently, I have been having trouble reaching my BK lawyer because he is so busy, but he told me some months ago that he had never heard of such an incident. I will continue to try to reach him so he can help me resolve this somehow.

If they won't take the car back and they are forcing me to pay off the loan then what was the purpose of the bankruptcy?

Thanks for all of your help.

seniorjudge · #10 04-11-2008, 02:55 PM

I do understand that. What I don't understand is if they have an obligation to take the car back. I don't expect them to release the lien to me but I would think that they have to take the car back.

A: They have no obligation to take the car back.

Recently, I have been having trouble reaching my BK lawyer because he is so busy, but he told me some months ago that he had never heard of such an incident.

A: He must have gotten out of law school last Tuesday.

If they won't take the car back and they are forcing me to pay off the loan then what was the purpose of the bankruptcy?

No one is forcing you to do anything. You said:

Citizens Bank wants me to pay $5000.00 for the lien to be released.

They have you over a barrel and they want to get some dough from you. Ask your BK lawyer, but I don't think what they are doing is at all illegal.