How does one get this 25 year old lien removed from the registration? 9 Answers as of June 29, 2015

In 1995, the $2,000 loan balance on a 1985 MBZ 300 Diesel was discharged in bankruptcy. The yearly department motor vehicles registration still lists the credit union as lien holder. Thank you.

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Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
If it was a chapter 7 bankruptcy there is still a lien. All the bankruptcy does is discharge personal liability. If you filed a chapter 13 and took the steps to also file a lien strip motion then the lien could have been stripped. If you have a judgment or order stripping the lien take it to the department of motor vehicles and they'll correct the records.
Answer Applies to: California
Replied: 6/29/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
While the obligation to pay the loan was discharged, the lien against the car is a different thing entirely. You probably have to track down the original lender and see whether they are willing to release the lien. Otherwise, you may be stuck driving it into the ground and then junking the car.
Answer Applies to: Colorado
Replied: 6/26/2015
Ronald K. Nims LLC | Ronald K. Nims
Bankruptcy only discharges you from liability for the loan. It doesn't remove the lien from the car. However, failing to enforce the lien for 25 years will make the lien unenforceable because it's past the statute of limitations (the statute in Ohio is 8 years, some states are longer, some are shorter but NOBODY has a 25 year statute). First, talk to the lender about removing the lien, if they don't cooperate, you'll need to file a suit against the lender to remove the lien.
Answer Applies to: Ohio
Replied: 6/25/2015
Stephens Gourley & Bywater | David A. Stephens
You would have to get a release from the company that holds the lien or a court order releasing the lien.
Answer Applies to: Nevada
Replied: 6/25/2015
John W. Lee, PC
John W. Lee, PC | Kim A. Lewis
Unless the debt was paid the lien is still valid. A discharge in bankruptcy prohibits a creditor from demanding payment but does not release an existing lien on property.
Answer Applies to: Virginia
Replied: 6/25/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The lien was not discharged in bankruptcy. Liens survive bankruptcy because they are secured by the collateral. You can reopen the case and ask that the court remove the lien on the grounds that the creditor has abandoned any interest in it. You need to do this to get rid of it. There is also a statute of limitations issue on a debt this old.
    Answer Applies to: California
    Replied: 6/25/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Chapter 7 bankruptcy does not remove liens. Sorry you were misinformed. Contact the credit union to try to arrange a payoff of the lien for a reduced amount if you want the vehicle title. Unlikely to be successful, but nothing ventured, nothing gained.
    Answer Applies to: Nevada
    Replied: 6/25/2015
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    The underlying debt was discharged in bankruptcy, but if the debt was secured by a lien, the lien was not removed. You would have to see what the credit union would require to remove or release the lien or determine if under the law of your State if liens expire or terminate after a certain number of years.
    Answer Applies to: California
    Replied: 6/25/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    There are two kinds of liability when property serves as security for a loan. Your personal liability was discharged in your bankruptcy. The lien attached to the property, however, is not released through the bankruptcy Assuming there is no judgment (which can be 'satisfied,' but through another process), you'll still have to deal with the lienholder to persuade them to release or'satisfy' the lien. Many people in bankruptcy do a reaffirmation agreementwhich must be filed before you receive your discharge. Your lawyer should have told you about this. At this point, you might want to contact the lienholder and make some small offer for a release of the lien, since after this long a time they likely don't expect any money, and they may even have shredded the file. I can't say whether you should offer $100, ore $500, or whatever. Try your skill at negotiating. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 6/25/2015
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