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Can a car still be reposed after the loan has been charged off for over a year.

Sellersburg, IN |
Filed under: Chapter 13 bankruptcy

I filed bankruptcy and included my car. I requested the bankruptcy be dismissed and called the finance company and told them to come and pick up the car. They never came for the car. The bankruptcy was dismissed in April of 2011. I received an email from the finance company on Aug. 11, 2011, telling me to contact them. On Aug. 12, 2011, the finance company charged off the loan and reported it to my credit. I have not talked with them again until Sept. of 2012. They confirmed the loan was charged but stated they are now looking for the car. Dept. of motor vehicles said they cannot take the car because the loan would have been taken off of their corporate taxes. Can they still come and take it after charging off the loan?

Attorney Answers 4

  1. Best answer

    As long as it has not been paid and they have the title, it can still be repossessed. If you have the title, then it is safe. If you do not have the title, then it will be difficult for you to ever get rid of it.

  2. The lien on the vehicle was not affected by your discharge. You don't get to keep a car for free just because you file a bankruptcy case. They ate entitled to repossess.

  3. If you are correct that a lender cannot repo a car after a charge off because of the tax code in your state, then you should send a letter to the creditor demanding that they release their lien and send you the title. Filing a bankruptcy that got dismissed does not affect the rights or obligations of anyone. Otherwise, you should try to find a lawyer to help you or surrender the car.

    This response is intended to give a general overview of the law and should not be treated as legal advice. There are too many factual issues and exceptions in the law to provide definitive conclusions about your circumstances.

  4. Yes.

    As a rule of thumb, legal advice from the DMV is generally not very solid. Charge-offs don't change this secured creditor's remedies or rights. You have their collateral and they have the right to get it back. Best advice: arrange for a convenient pickup of the vehicle, and whatever you do, do not hide it or otherwise try to thwart, impair or otherwise hinder the rights of the creditor.

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