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  1. #1
    Join Date
    Mar 2015
    Posts
    4

    Default Disposing of a Vehicle After Bankruptcy When There's Still a Lien

    My question involves a consumer law issue in the State of: California

    I have a 16 year old car that is not running. If it were running, Kelly Blue Book lists it's worth at around $800.00. We have dumped over $1300 into it in the last year to keep it running, but it's broken down again, and this time it's another $700 to fix. We are done fixing it, and just want to take it to a salvage yard. We bought the car in 2002 with a loan from Drive Financial. Years later we claimed Chapter 7 bankruptcy in 2009. We named Drive Financial as a creditor in the bankruptcy and we were released of our obligation to pay the remainder of the loan by the court - about 3 (or 4, I can't remember now) payments of $350.00. We know that Drive Financial is under no obligation to release the title if we wanted to sell it, but we don't want to / can't sell now. It's just too old and broken down. Do we still have to have the title to junk the car? Thanks so much!

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: My 16 Year Old Car Doesn't Run Anymore. Would Like to Take to a Salvage Yard, But

    Yes you do. Try calling them and asking them which salvage yard they would like you to drop it at and tell them that they just need to send you the paperwork to sign first, so they can get the salvage money from it.

  3. #3
    Join Date
    Mar 2015
    Posts
    4

    Default Re: My 16 Year Old Car Doesn't Run Anymore. Would Like to Take to a Salvage Yard, But

    Thank you Disagreeable! We don't care about making any money, we just want to be released from the car, do you know what I mean? Is there any way possible we can no longer be responsible for the vehicle? Donate it to a non profit who takes cars? We went through the Chapter 7 legitimately and legally, and we are very concerned that if we give Drive Financial the opportunity to receive payment even via a salvage yard, they will ruin the credit we worked hard to build back up since the bankruptcy all over again by reporting it, reopening the account or otherwise report something on the account that is one year away from falling off our credit reports.

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

    Default Re: My 16 Year Old Car Doesn't Run Anymore. Would Like to Take to a Salvage Yard, But

    Disagreeable's suggestion has a chance of working, but it could also be ignored or the lien holder can refuse to agree to the plan.

    If you want the car to be released from the lien, contact the lien holder and ask what it would take for them to issue a release of lien. Odds are they will be able to come up with a dollar figure.

    This is about the lien, not the original debt that has been discharged, and a payment to release the lien should not be reported on your credit.

  5. #5
    Join Date
    Mar 2015
    Posts
    4

    Default Re: My 16 Year Old Car Doesn't Run Anymore. Would Like to Take to a Salvage Yard, But

    Thank you very much Mr. Knowitall. We'll try this with Drive Financial first. Their Bankruptcy Dept (where what's left of our 13 year old account is handled) employees have been e-x-t-r-e-m-e-l-y rude in the past and they've never been willing to negotiate at all... It's hard to believe that we are still being forced to pay them even though the courts released us of our obligation to do so, to rid ourselves of this junker. It's very unfair. Seems like the law is not working in our favor here at all

  6. #6
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Disposing of a Vehicle After Bankruptcy When There's Still a Lien

    Seriously? You ripped them off and drove their car until all that was left was salvage value and the law favored them. Pardon me while I shake my head in disbelief.

  7. #7
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Disposing of a Vehicle After Bankruptcy When There's Still a Lien

    If the lender chooses not to recover its property, it knows that it's leaving the property with the debtor, it knows that the overwhelming majority of debtors will continue to use the property, and it knows that it's all-but-certain that the property will ultimately have little to no value. The bank is making an economic decision, and accepts the consequences of its choices.

  8. #8
    Join Date
    Mar 2015
    Posts
    4

    Default Re: Disposing of a Vehicle After Bankruptcy When There's Still a Lien

    Is Disagreeable some kind of troll on this forum or something? Purposely trying to drive new members off? Obviously he enjoys writing thing to upset because he has anonymity here. He doesn't know me or the circumstances in which we had to file for bankruptcy. We told the finance company they could come get their car at any time before, during and after the bankruptcy process and all we could get out of their bankruptcy agents was "pay us and we'll talk." Well if we could pay them, we wouldn't have had to file bankruptcy! "Ripping them off" would have been to stop paying them through illegal channels and not letting them know where the car was, trying to hide it from getting repo'd, hide where we lived, etc. We went through legal due process. They could have picked up their car any time. They know where we live. Disagreeable please don't bother writing any obviously sad and pitiful little comments on my thread. You must have somewhere else in which to twitch.

    Mr. Knowitall, my husband went down to the DMV yesterday to ask an agent what we could do. She suggested filling out a "Release of Liability" form, and calling the finance company to inform them of this, then asking them where we could drop off "their" car, and just keep hammering this question until at the very least we get a 2-way discussion about how to resolve this.

  9. #9
    Join Date
    Jan 2010
    Location
    New Jersey
    Posts
    3,666

    Default Re: Disposing of a Vehicle After Bankruptcy When There's Still a Lien

    Quote Quoting disagreeable
    View Post
    seriously? You ripped them off and drove their car until all that was left was salvage value and the law favored them. Pardon me while i shake my head in disbelief.
    The nerve of some people. roflmao

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