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How to Get the Finance Company to Release a Lien After Banrkuptcy Discharge

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  • 02-09-2018, 04:41 PM
    shaunat
    How to Get the Finance Company to Release a Lien After Banrkuptcy Discharge
    My question involves bankruptcy in the state of: Idaho.

    Hello and thank in advance for your help. About 5 years ago I went through a divorce and we fell behind on all our debts. Anyhow one of our debts was an ATV. I financed $5000. At the time of default I owed $1500. Before the bankruptcy I guess they stopped by to reposes the atv but it was garaged and we weren’t home so they couldn’t. I told them we could set up a Time and they could come get it. Never heard from them again. Received a 1099 in the amount of $1500 as they charged off the debt.

    1 year later filed chapter 7. I did not wish to renew (whatever it’s called) the loan and start making payments again as I did not even want the ATV any longer but because the value of the atv compared to my balance, I owned more of the atv than the bank so they discharged the balance and the finance company never disputed or requested the property back. Anyway. I need to get rid of it. It’s not worth anything anymore so I was just going to junk it. Need a clean title to do so.

    How do I get them to remove their lien as it was discharged and they didn’t want it back? Or am I just out of luck and have to use it as a chair in my garage for the rest of my life? Thank you!
  • 02-09-2018, 06:29 PM
    llworking
    Re: How to Get the Finance Company to Release Lien After Discharge
    Are you sure that there is no junk yard that will take it without a title to use for parts? Or, you could sell it for parts, or you could take it apart and junk the parts.
  • 02-09-2018, 06:57 PM
    adjusterjack
    Re: How to Get the Finance Company to Release Lien After Discharge
    Quote:

    Quoting shaunat
    View Post
    How do I get them to remove their lien as it was discharged and they didn’t want it back?

    You don't. As long as they aren't attempting to collect the debt they don't have to lift a finger to help you.

    Quote:

    Quoting shaunat
    View Post
    Or am I just out of luck and have to use it as a chair in my garage for the rest of my life?

    Put it on Craigslist for free.

    Somebody will take it without the title.
  • 02-10-2018, 04:35 AM
    despritfreya
    Re: How to Get the Finance Company to Release Lien After Discharge
    Quote:

    Quoting adjusterjack
    View Post
    Put it on Craigslist for free. Somebody will take it without the title.

    Problem is, should something happen causing injury, OP is still the titled owner and could be dragged into the situation. OP's issue is a perplexing one and I have no idea how to resolve it other than working something out with the lender. I am interested in reading additional comments about possible solutions.

    Des.
  • 02-10-2018, 08:30 AM
    adjusterjack
    Re: How to Get the Finance Company to Release Lien After Discharge
    Quote:

    Problem is, should something happen causing injury, OP is still the titled owner and could be dragged into the situation.
    He would file a sold notice with the DMV, keeping permanent confirmation and documentation of the notice, and remove and turn in any existing license plates to the DMV.

    That could give him a defense to any lawsuits or tickets.

    Quote:

    working something out with the lender.
    If OP voluntarily offered money and the lender accepted, that would not violate the bankruptcy?
  • 02-10-2018, 11:05 AM
    Mr. Knowitall
    Re: How to Get the Finance Company to Release a Lien After Banrkuptcy Discharge
    Quote:

    Quoting shaunat
    View Post
    How do I get them to remove their lien as it was discharged and they didn’t want it back?

    Ask them nicely? Offer them enough money to make it worth their while?

    They are not legally obligated to help you.
    Quote:

    Quoting llworking
    View Post
    Are you sure that there is no junk yard that will take it without a title to use for parts?

    That's a common suggestion, predicated on the notion that scrap yards are willing to operate as chop shops. While some may be willing to overlook problems with the title or lack of title from the "seller", it should not be assumed that it will be easy to find a scrap yard that is eager to put itself at risk in that manner.
    Quote:

    Quoting adjusterjack
    View Post
    He would file a sold notice with the DMV, keeping permanent confirmation and documentation of the notice, and remove and turn in any existing license plates to the DMV.

    In Idaho the form would be a "release of liability" form filed with the IDT within five days of transfer. The receipt from the buyer should note that the buyer is taking the car subject to the lien.
    Quote:

    Quoting adjusterjack
    If OP voluntarily offered money and the lender accepted, that would not violate the bankruptcy

    The lender would not be taking action to collect a debt. It would be responding to an offer to obtain a release of a still-valid lien; by the same token, even before a final discharge, once the automatic stay expires a lien holder may legally enforce the lien consistent with state law.
  • 02-10-2018, 03:19 PM
    llworking
    Re: How to Get the Finance Company to Release a Lien After Banrkuptcy Discharge
    Quote:

    Quoting Mr. Knowitall
    View Post

    That's a common suggestion, predicated on the notion that scrap yards are willing to operate as chop shops. While some may be willing to overlook problems with the title or lack of title from the "seller", it should not be assumed that it will be easy to find a scrap yard that is eager to put itself at risk in that manner.

    It isn't even remotely the same as a "chop shop". The item is being turned over to them by the legal owner. Yes, its subject to a lien but the lienholder does not wish to repo the item. Therefore scrapping it is logical.
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