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What can I do to get response regarding lien release on my car title after Chapter 13 discharge?

Saint Louis, MO |

It has been several months since my capt 13 has been discharged . Loan company refused to release lien stating that money is still owed . My attorney discovered that the attorney's for loan company filed claim as a deficiency judgment by mistake as car was never repossessed and the suit they filed against me was dismissed before it went to court . My attorney said he would look into it but to date I've got nothing from him and that was after he told me to check back . Loan company keeps referring me to their attorneys and the attorneys supposedly told my attorney that they no longer represent loan company . I am at a loss as to what to do at this point and my attorney doesn't seem like he wants to put any effort into the matter at all because his job is done and he received his money .

Attorney Answers 3

  1. Oh boy, it sounds like the car lender was treated as an unsecured creditor & thus got less $$$ from the trustee than they would have IF they had been treated as a secured creditor. Your attorney should have noticed this early on when he received the list of FILED claims from the trustee. I would run this past another BK attorney, then consider filing a malpractice claim against your attorney's malpractice insurer. The Ch.13 $$$ has all been distributed, so it is too late to "amend" your bankruptcy, but you may get settlement $$$ from the insurer equal to the amount of $$$ the creditor should have gotten, minus the amount they actually got. Good luck.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.

  2. Diane has raised a good point, that your attorney could have fixed this if he had monitored the claims filed by creditor, and asked the attorneys for the car lender to amend their claim to a secured one. While your attorney may bear some responsibility for this mess, so too does the lender's attorney, for filing the claim incorrectly. they may have been provided incorrect information from the lender, resulting in the incorrect claim. You could talk to another bankruptcy attorney to review the situation, and see if a solution can be found. You may also want to talk to someone at the Ch 13 trustee's office, and see if they have any direction they can provide. This will all turn on the facts of the underlying claim filed, so start with seeing if the trustee can provide a copy for you to give to the next bankruptcy attorney to review. If the lender filed an improper claim, they may have to live with those consequences. God luck!

  3. What is the current market value of the car?

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