What do I do if a title loan was discharged in the chapter 7 but the loan company refused to take the secured vehicle? 27 Answers as of February 24, 2014

The loan was discharged but the loan company says they don't want the car, even if I agree to surrender it, they want the money. They still send bills for the loan. They say that once the chapter 7 discharged they can again come after the monetary debt of the original loan.

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
That is not true. Contact your BK attorney. You can ask the Bankruptcy Court issue a contempt citation against the creditor. You can also turn the creditor into the State Attorney General's Office for violating your state collection laws. These debts are not collectable, assuming the creditor was listed on your schedules, and the "Statement of Intention" clearly indicates that you wish to surrender the vehicle (I am also assuming you did NOT sign a Reaffirmation Agreement with that creditor).
Answer Applies to: Colorado
Replied: 2/24/2014
Stuart Jon Bierman  Attorney at Law
Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
Seems like you should consult with a lawyer about when the time would be right to file a motion to hold them in contempt of court for seeking to collect a debt that was discharged, and maybe they are also currently in violation of the Automatic Stay. That could be the subject of another motion to hold them in contempt. If you do not have an attorney then I would be glad to meet with you.
Answer Applies to: New Jersey
Replied: 2/18/2014
Patrick W. Currin, Attorney at Law | Patrick Currin
If you surrendered the car and they refused to take it, that is their problem. The debt has been discharged and cannot be re-asserted. By attempting to collect this debt they are violating federal law.
Answer Applies to: California
Replied: 2/18/2014
The Troglin Firm | William M. Troglin
The title loan is classified as a secured debt. When you file a Chapter 7 your personal liability is discharged, meaning you no longer have a personal liability to pay the loan. A secured creditor has a right to be paid OR get his collateral (the car). If the lender does not want the car, then keep it and use it. If the creditor is continuing to send bills while the bankruptcy is open (or after the discharge) he is in violation of the automatic stay and you, through your attorney, can file a motion for contempt while the case is open. After discharge you would have to file suit in state court.
Answer Applies to: Georgia
Replied: 2/18/2014
Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
Talk to your bankruptcy attorney about your options. This may require a motion to avoid lien.
Answer Applies to: Arkansas
Replied: 2/18/2014
    Paul Stuber, Attorney at Law
    Paul Stuber, Attorney at Law | Paul Stuber
    They only have a security interest left in the car. If they attempt to collect on a discharged debt they are violating federal law. The only recourse for them is against the car.
    Answer Applies to: Colorado
    Replied: 2/18/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    They can not come after the monetary debt as that is a discharge violation for which you should sue them. They can only take the car and if they say they don't want the car, then I would have my attorney file a motion to unencumber title so that you can have title to the car.
    Answer Applies to: New York
    Replied: 2/18/2014
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    This is a NYS website. No title loans in NYS. Ask a local atty.
    Answer Applies to: New York
    Replied: 2/18/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    No, the loan company can't come after the actual loan. Their only recourse is to take back the vehicle. By sending you these bills, they are in violation of the discharge order from your Chapter 7 case. You can't force them to take back the vehicle however, so you really have to pursue two separate avenues. First, you should send them several certified letters each carefully spaced apart in terms of mailing dates that warn them that they cannot continue to send you bills because they are violating your discharge order. Second,and I'm not sure if this car is dilapidated or not, but if the car cannot be driven or cannot pass inspection, then you have an eyesore parked in front of your house that will become annoying very quickly. As a result, you should develop proof of the current value of the car. For example, go to your auto mechanic and have him wrote up on his stationery a description of the car's problems along with how much it will cost to fix them. Give this letter to the car lender and say that you're willing to pay $x for the car title to be transferred to you . Let's say that you offer $100. You pay it, and then with the title, you can take it to an auto salvager and get your money back.
    Answer Applies to: Pennsylvania
    Replied: 2/18/2014
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If you discharged the loan and didn't reaffirm, they cannot go after you for the loan. They can take the car back or you can have your attorney file papers to say it has been abandoned and you can keep or sell the car if the court agrees.
    Answer Applies to: Michigan
    Replied: 2/18/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    The best way to proceed in this case is to sue the creditor for contempt in the bankruptcy court. You should be able to force them to pay all the costs of the suit including your attorney fees, and the court will order them to release the lien they have on the title so you can dispose of the car.
    Answer Applies to: Oregon
    Replied: 2/18/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    see a lawyer about filing an action against them for violating the discharge injunction. Most likely this is a 3rd party who is a scammer, these guys will lie to you all day long to you.
    Answer Applies to: California
    Replied: 2/18/2014
    Idaho Bankruptcy Law | Paul Ross
    They are wrong. Personal liability was discharged under the Chapter 7. Visit with your attorney, you have discharge injunction violations that can be dealt with in the bankruptcy. Their only recourse after the discharge is to sell the vehicle and realize whatever they can from the sale.
    Answer Applies to: Idaho
    Replied: 2/18/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    They cannot attempt to collect. You can threaten to seek sanctions against them for violating the automatic stay.
    Answer Applies to: Nevada
    Replied: 2/18/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    They cannot do this, if you did not reaffirm the debt. You should report them for a violation of the bankruptcy law.
    Answer Applies to: California
    Replied: 2/18/2014
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Reopen your case, and file an automatic stay violation.
    Answer Applies to: Florida
    Replied: 2/18/2014
    Stephens Gourley & Bywater | David A. Stephens
    Assuming the debt was not reaffirmed, then they lost their rights to collect the money from you when the discharge was granted. All they can have is the car.
    Answer Applies to: Nevada
    Replied: 2/18/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    They are wrong. They can either take the car or the money. Call your lawyer. If you don't have one you may wish to hire one now to assist you.
    Answer Applies to: Colorado
    Replied: 2/13/2014
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    They cannot come after you for the debt. They are entitled to the car but nothing more.
    Answer Applies to: Utah
    Replied: 2/13/2014
    Law Offices of Patrick Edaburn | Patrick Edaburn
    I would discuss this with your bankruptcy attorney. If the loan was properly discharged then they should not be able to collect.
    Answer Applies to: California
    Replied: 2/13/2014
    Danville Law Group | Scott Jordan
    The loan company's actions are a violation of the Bankruptcy Stay and you can sue the company for attempting to collect on a discharged debt obligation. Their only recourse to repossess the vehicle. You should contact your bankruptcy attorney who, I am sure, would be happy to sue the company. Among other things, the company is liable for your attorneys fees and court costs.
    Answer Applies to: California
    Replied: 2/13/2014
    Barr, Jones & Associates LLP
    Barr, Jones & Associates LLP | Andrew Brasse
    If you did not reaffirm on the debt, they cannot come after you for any money owed on that loan. They are in contempt of court for continuing to come after you for said debt.
    Answer Applies to: Ohio
    Replied: 2/13/2014
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    No. The monetary part is discharged in bankruptcy. The only was they can recover any of their money at this point is through the sale of the vehicle. If they don't want it, then they have no ability to recover any of their money.
    Answer Applies to: California
    Replied: 2/13/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Call your attorney they are violating the law.
    Answer Applies to: Florida
    Replied: 2/13/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    The creditor may be in violation of the bankruptcy stay provision depending on whether their efforts are to obtain the surrendered collateral or are solely an effort to collect on a discharged debt. If you have well documented efforts to surrender the collateral to the creditor that will be important if you decide to pursue a claim for violation of the the bankruptcy stay. It is important that you seek an attorney to discuss your options.
    Answer Applies to: Indiana
    Replied: 2/13/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    When are you going to stop taking legal advice from creditors? Do your creditors have a law degree? Unlikely. More likely they have nothing more than a high school diploma as their education. Creditors lie, especially if they believe you are ignorant. If you contact a bankruptcy litigation attorney, you may be able to sue the creditor for a violation of your bankruptcy discharge & obtain money damages, which would include your legal fees.
    Answer Applies to: Nevada
    Replied: 2/13/2014
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    What you do is set them up for and then file a lawsuit in bankruptcy court for violating the discharge injunction by continuing to bill you and not take the vehicle or remove the lien. Even though the lien on the vehicle survives a bankruptcy filing, if you are willing to surrender the vehicle, the secured creditor cannot try to collect any further from you. The secured creditor is limited to trying to collect from the collateral by repossessing it. Document the phone calls or other communications and save all written communications.
    Answer Applies to: California
    Replied: 2/13/2014
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