Can you sell a vehicle if the lender refuses to repossess it? 10 Answers as of June 05, 2017

The lender of my vehicle refuses to repossess the vehicle. I'm thinking of filing for chapter 7 bankruptcy anyways, but what do I do with the vehicle and should I wait until after filing to do anything?

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Ronald K. Nims LLC | Ronald K. Nims
If you're in bankruptcy, your attorney can refer you to one of the companies that take care of used cars for debtors.
Answer Applies to: Ohio
Replied: 6/5/2017
Rhymer Law Firm
Rhymer Law Firm | William Rhymer
If you file a Chapter 7 you can generally surrender it and owe nothing on the vehicle. I would suggest waiting until you talk with a bankruptcy attorney. If you have too much income, you may be able to use it as an income deduction if you still have possession of the vehicle at time of filing.
Answer Applies to: Georgia
Replied: 6/5/2017
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Put the vehicle in the lender's parking lot. Put the keys with a note in an envelope and drop it in the mail slot. Advise the lender you are filing bk, and returning the vehicle. Give the lender your attorney's name and contact information. Good luck!
Answer Applies to: Colorado
Replied: 6/5/2017
Stephens Gourley & Bywater | David A. Stephens
You can sell it subject to the claims of the bank. However, without a release of claim from the bank, the buyer would not get free and clear title.
Answer Applies to: Nevada
Replied: 6/5/2017
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
No, you likely can't sell it without the title. If the lender refuses to pick it up there are businesses that can help you. They will pick up the car, hold it in their lot, and release it to the creditor on payment of towing and storage. If the creditor doesn't want it they auction it.
Answer Applies to: California
Replied: 6/5/2017
    OlsenDaines | Rex Daines
    You can't sell a vehicle you don't have a good title to. If the lender has a local office, just take the vehicle to the office and give them the keys. In a chapter 7, you can do a process called a redemption. This allows you to pay the value of the vehicle and get the title. Then you can sell it.
    Answer Applies to: Oregon
    Replied: 6/5/2017
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Unless you have possession of a clean title, you have nothing to sell. Your attorney may be able to get you a clean title through a process called redemption if you decide to proceed with a chapter 7 bankruptcy.
    Answer Applies to: Nevada
    Replied: 6/5/2017
    Garner Law Office
    Garner Law Office | Daniel Garner
    You cannot sell a vehicle without the title, and presumably the lender has the title. You can force them to give back the title during your bankruptcy, although you might have to pay a little bit for it.
    Answer Applies to: Oregon
    Replied: 6/5/2017
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    The creditor might be more motivated to act once he gets a bankruptcy notice from the Court. Your lawyer (and you should find one) will probably advise you to state( On one of the BR papers called Statement of Intention, that you intend to surrender the vehicle. Have him or her separately notify the lender, and offer to have the lender call you to set up a convenient time for him to pick up the car. You generally may not sell the car without the lender's permission. That is a crime in most states. If the creditor persists after your bankruptcy discharge in ignoring you, drive the car to the nearest location to the lender, and send the keys to the lender with a description of its location. Or if you are very bold, you could write the lender, by certified mail, return receipt requested, that after a given date (say...3 months after your discharge), if they have not picked up the car, you will regard it as abandoned.
    Answer Applies to: Wisconsin
    Replied: 6/5/2017
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You need to reopen the case and file a motion to redeem the vehicle for $1.00. As that the clerk sign the DMV forms.
    Answer Applies to: California
    Replied: 6/5/2017
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