Who is responsible for the tow bill of surrendered vehicle after chapter 7 bankruptcy? 10 Answers as of March 05, 2014

My wife had a title loan, and then the vehicle's engine failed and was unrepairable. A few months went by and she was forced to file chapter 7 bankruptcy on this and other outstanding debts. After the discharge, the title loan company refused to pick up the vehicle, so I had it removed from our property. My wife now received a letter from the tow truck company saying she is the owner and responsible for picking up the bill and removing the vehicle from the impound lot. I was thinking the vehicle was owned by the title loan company since we had to surrender it, and the discharged bankruptcy meant she was not able to even sell it for scrap because she didn’t own it anymore. What am I missing?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Stephens Gourley & Bywater | David A. Stephens
Generally, whoever requests the tow is responsible for paying for it.
Answer Applies to: Nevada
Replied: 3/5/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You owe the bill to the towing company. It is a post petition debt incurred by you.
Answer Applies to: California
Replied: 3/5/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Who ever called the tow company is responsible for the tow bill. Title to the vehicle remains with your wife unless the car is repossessed and sold at auction. The loan company has a lien on the title, but is not the record owner of the vehicle. Therefore, who ever called the tow company is responsible for that obligation.
Answer Applies to: Colorado
Replied: 3/5/2014
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
You ordered the tow after the bankruptcy discharge so it would not be included in the discharged debt. Different result if the owner of the vehicle ordered the tow. Then it would be liable. Just because it was surrendered in the bankruptcy doesn't mean title has changed or that you can add to the initial prepetition debt.
Answer Applies to: California
Replied: 3/5/2014
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
Unfortunately, if you incurred the debt post bankruptcy them it is your responsibility.
Answer Applies to: Nevada
Replied: 3/3/2014
    Detroit Lawyers, PLLC
    Detroit Lawyers, PLLC | Nick Best
    If you contacted a towing service to remove the vehicle after a discharge was entered. It is a post-petition debt that remains due and owing regardless of the surrender.
    Answer Applies to: Michigan
    Replied: 3/3/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Signing a form saying you intend to do something. Even in a court proceeding, isn't the same as actually doing it. Since the title was in your wife's name, she is the owner of the vehicle, and since the tow truck was called after the bankruptcy.
    Answer Applies to: Nevada
    Replied: 3/3/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Surrender of property does not constitute acceptance by the lender. Indeed, if it was worthless, why accept it. If you called for services and they were post-petition, that is your wife's bill to pay.
    Answer Applies to: California
    Replied: 3/3/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    A title loan may establish a lien on the collateral if it is listed on the vehicle title. The lien holder is not the owner of the vehicle simply because your wife opted to surrender the vehicle as part of the bankruptcy. The tow bill and storage fee will be your responsibility since you chose to have the vehicle towed and it will not be a debt that can be included in the bankruptcy since it was incurred after the bankruptcy was filed.
    Answer Applies to: Indiana
    Replied: 3/3/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If they did not take possession then it is your liability.
    Answer Applies to: New York
    Replied: 3/3/2014
Click to View More Answers: