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  1. #1

    Default Removing a Lien After Bankruptcy

    My question involves bankruptcy in the state of: Arizona

    I have a watercraft that was in my bankruptcy which according to my credit report the debt was discharged in the bankruptcy. Now the lien is still on the watercraft how do I get the lien removed. GE Money bank was notified of the bankruptcy and there attorney which they had obtained was also notified. What do I have to do to get the lien off?

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Removing a Lien After Bankruptcy

    You need to pay the lender. The debt might have been discharged but the lien survived your bk. If you want a lien release (I assume you financed the purchase through GEMB - or, you owned the "watercraft" and used it as collateral to get a loan through GEMB) you have to pay the lender.

    If you did a Chapter 7 you had 3 choices as it relates to this secured credtor:

    1. Surrender the collateral and owe nothing;
    2. Redeem the collateral by paying the lender the value of the "watercraft"; OR
    3. Reaffirm the debt and continue to make the normal monthly payments.

    What did your "Statement of Intention" say as it relates to this secured debt?

    Des.

  3. #3

    Default Re: Removing a Lien After Bankruptcy

    That is where I am confused, I got the watercraft on my Funancing card (This was a physical credit card) It could be used for other purchases at any recreational vehicle shop (Harley Davison, chapparel,ect) I was able to use it for repairs on my quad and motorcycle. It was not listed on statement of intention due to they had an attorney at the time I filed bankruptcy and my attorney notified them of the bankruptcy and let them know I would surrender it. They did not show up in the bankruptcy court to claim the vessel or even respond to my attorney. I did have someone come to repo it but was in the hospital at the time, I called the gentleman doing the repo back several times to come get it and was told that he did not know if they still had the contract and that was the last I heard until about a week before the bankruptcy. I tried to get all this straight with the BK attorney but was just told the BK was done and that was it.

  4. #4
    Join Date
    Sep 2010
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    478

    Default Re: Removing a Lien After Bankruptcy

    Quote Quoting wrighttrisha
    View Post
    That is where I am confused, I got the watercraft on my Funancing card (This was a physical credit card) It could be used for other purchases at any recreational vehicle shop (Harley Davison, chapparel,ect) I was able to use it for repairs on my quad and motorcycle.
    This is your misunderstanding. You FINANCED the purchase of the "watercraft" on a "credit card" that you can only use at certain stores. You did not put its purchase price on a typical VISA or MASTERCHARGE card. Pull your financing documents and/or cardholder agreement. You will see that you gave the finance company, GEMB, a security interest and such is evidenced by the fact that there is a lien on the title to the "watercraft". With the exception of there actually being a title to the "watercraft", this is no different from purchasing a lawn mower at Home Depot using Home Depot's credit card which is really Citibank. Home Depot (Citibank) is secured by the lawn mower. As it relates to the repairs, since such is not a "material purchase" there is nothing to be "secured". This is no different from purchasing paint at Home Depot, again, using its credit card.

    Quote Quoting wrighttrisha
    View Post
    It was not listed on statement of intention. . .and my attorney notified them of the bankruptcy and let them know I would surrender it.
    Then it should have been on the Statement of Intentions as a surrender - option #1 from my first post.

    Quote Quoting wrighttrisha
    View Post
    They did not show up in the bankruptcy court to claim the vessel or even respond to my attorney. I did have someone come to repo it but was in the hospital at the time, I called the gentleman doing the repo back several times to come get it and was told that he did not know if they still had the contract and that was the last I heard until about a week before the bankruptcy. . .
    The creditor did not have to "show up in the bankruptcy court to claim" its collateral. The fact that nothing has happened since you filed is not relevant. Since you were unable to turnover the item before you filed, you should contact GEMB directly to see what it wants to do. It may simply want a few bucks for the release of the lien and you can negotiate something all will be happy with, or, you simply arrange for the lender to take back its property and be done with it.

    Des.

  5. #5

    Default Re: Removing a Lien After Bankruptcy

    Thanks for all your help, Now I have the answers that I have been looking for in the past couple of years it has been 4 years that I have been looking for an answer on what to do with this thing. Thanks again

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