Lender Wants Motorcycle, Debt Discharged in Bankruptcy
We declared ch. 7 in 2008,and discharged our debts,except for my 2001 motorcycle. the lender never told us or our attorney that they wanted to reaffirm the debt,or have me surrender it. When I asked him about it ,our attorney said that they held the lien,so I couldn't sell it,but that I didn't owe anything on it either. We had absolutely no contact by letter or phone call for almost 4.5 years,then "out of the blue" I received a call from a repo agent asking if I still had the cycle,and if so,that the lender wanted it picked up. I told him I believed this to be a mistake,and that I would contact the institution. I did so,and after discussing a settlement with them to keep the bike,they told me I would have to pay 5000 to keep it or they would take it. I told them that trade on it in good condition according to 5 local dealers was between 2200 to 2400..retail 3700 but this bike is not in good condition... I agreed in person to pay 100,which I did,then 400 2 weeks later,which I did not,instead consulting an attorney who told me not to pay,but to see how this showed up 4.5 years later. The lender told me it had "slipped through the cracks" but if I wasn't willing to pay 5000 for it she would put it up for repo again. I'm wondering if the statute of limitations may apply here. I just received a call on my cell today from another repo agent wanting to pick up the bike. I didn't answer the call, but I would like to know what avenues I can pursue....thanks
Re: Lender Wants Motorcycle, Debt Discharged in Bankruptcy
If you defaulted on your loan, all else being equal, they can repossess. They cannot pursue the discharged loan balance or a deficiency.
If your lawyer knows of a way for you to get title without paying for the motorcycle, ask your lawyer to explain his thinking. You chose not to identify your state, so we cannot direct you to the laws or statutes of limitation for your undisclosed state.
Re: Lender Wants Motorcycle, Debt Discharged in Bankruptcy
Sorry,that was my fault there...kinda new at this...my bankruptcy was in the state of Maryland,but it was a Pennsylvania lender...discharged August 2008,first contacted November 2012....
Re: Lender Wants Motorcycle, Debt Discharged in Bankruptcy
As Mr. K suggests, you cannot keep the motorcycle if you do not pay for it. You discharged the loan but not the lien. The fact that the lender waited so long, IMO, is not relevant. It has a lien against the bike and can exercise its right at any time. I am sure you attny did not tell you that you simply could keep the bike without paying for it. If he/she did, he/she should not be “practicing” law.
If you want to keep the bike you need to work it out with the lender. If the lender is not willing to take less than $5k and you are not willing to pay the $5k settlement amount then you need to return the bike to its rightful owner, the lien holder.
You have already had the benefit of using the bike for 4.5 years without making a payment. It is time to move on.
Des.