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  1. #1
    Join Date
    Sep 2006
    Posts
    3

    Default Release of lien after discharge

    When we filed our 13, the credit union holding loans on our truck and trailer was selling all loans to another credit union (Pepsi to GE). There must have been a mess up because a lien was never placed on the truck and a claim was never filed for repayment of that loan. As far as we know there was a claim on the trailer and GE credit union has the title. Our case was discharged in July 2006---two years earlier than expected because the truck was not included in the case.

    Having said that here's the problem: We requested a release of lien on the trailer and the title since we now have a buyer for it. GE credit union won't give it to us, even though they had me fax them the discharge from the court, because they say there are substantial balances on both the truck and trailer. They say they have their attorney looking into it. I was told that they are out of luck since the case was discharged and they made the mistake in filing claims. Has anyone had this type of experience? Of course my attorney no longer works for the firm and the new attorney I'm supposed to use is slow to move. I have a seller now!!! I don't suppose there's anything I can do but wait?

    Thanks for your input
    Jen

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Release of lien after discharge

    Was your debt on the truck and trailer included in your bankruptcy? With proper notice to the lender(s)?

  3. #3
    Join Date
    Sep 2006
    Posts
    3

    Default Re: Release of lien after discharge

    Yes, as it turns out, the truck was supposed to be a surrender. We certainly didn't understand that, and it appears that GE didn't know it was to be a surrender, and thus never asked for it. The trailer was included at $10,000 but GE says we still have a balance of $4K. So my guess is that they didn't file the right amount. And I found out today that they never filed a claim for a 1K unsecured loan. They are going to hold out on giving us that release as long as they can as punishment.

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Release of lien after discharge

    If you were supposed to surrender the vehicle, why would you have included the loan in your repayment plan? And if it was included in the repayment plan why isn't the loan being treated as paid off? Or are you stating that you told GM you would be returning it, they didn't make any claim for repayment on the basis of the promise, then you kept the vehicle when it apparently escaped their attention that they hadn't recovered it?

    If you mean that you intentionally left the vehicle out of your repayment plan and were supposed to surrender the vehicle, but "got lucky" that they didn't actually repo it (and you chose not to return it yourself), what is your actual complaint? That you're not getting a great big freebie?

  5. #5
    Join Date
    Sep 2006
    Posts
    3

    Default Re: Release of lien after discharge

    We did not know that the vehicle was to be surrendered until just 3 months before our discharge (we would not have agreed to that in the first place). And that's why it was not included in our payment plan. Since Pepsi (the original owner of the debt) did not repo it, nor did they execute a lien on it, the debt is automatically discharged upon completion of our chapter 13.

    Here's what I have found to be the bottom line: When we filed our case Pepsi Credit Union was the owner of our debt. Approximately 6 or so months later they sold our debt to GE Credit Union, who for whatever reason did not understand or pay attention to the debt they were purchasing. For almost 3 years they accepted payments from the trustee (never following up on the truck loan) until the amount of the claim Pepsi filed for was paid in full. Now at the end of the case, they are finding out that someone wasn't paying attention and they want to collect on $14,000 that was left out of the chapter 13 plan by Pepsi, who again was the original owner of the debt. My understanding so far is that unless we committed fraud and they can prove it, once the case is close then debt is discharged and they have to release the lien on the trailer. It is their error in purchasing the debt without knowing what they were purchasing. We are not out to rip anyone off or to "get lucky", but I refuse to be bullyed by these people. So you see, my post was not a complaint, but rather an attempt to see if this had happened to anyone else. Apparently it hasn't.

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Release of lien after discharge

    Sure, similar things have happened to other people. Usually the vehicle is surrendered, but the debtor doesn't return it and no repossession occurs, then a few years later the debtor wants to sell it but can't convey clear title. That's a hair different from your scenario, the way you tell it, and leaves the debtor with fewer (or no) remedies.

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