So I have a Yamaha ATV that was discharged when I filed for bankruptcy. The lender said that they do not come and take back the ATV. It's been almost a year now since the bankruptcy case has closed and I'm wondering if it is legal for me to sell that ATV?
If you were represented by counsel, then you should contact your attorney. If not consult with an experienced PA Bankruptcy attorney. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
If you found this Answer helpful, please mark it as "Best Answer" Please be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.
In order to give the buyer clean title to the ATV you'll have to either pay the lien holder or get them to release the lien. Your bankruptcy discharged your personal liability for the debt, it did not affect the validity of the lien.
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
Since the bankruptcy is over, it does not have any bearing on selling the ATV. To sell it, you would have to transfer title. You can't do that if the lender has the title. So they will have to agree to transfer title when you sell it. They will do that if the loan is paid in full with the buyer's proceeds. Otherwise, you will have to talk them into taking a short-payoff if the buyer is offering less than what is owed. As Mr. Caldwell pointed out, the lender's lien on the vehicle is not affected by the bankruptcy.
Please note this is to be considered general advice and not legal advice about any particular situation. The answering of any question does not create an attorney client relationship and does not make the answer specific legal advice. I am an attorney admitted to the practice of law in the state of Georgia. Â
Do you have the title? If there was a lien on the title, then it would be unaffected by the Chapter 7.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline