Legal Question in Bankruptcy in Illinois

I filed personal and business Chapter 7 bankruptcy in 2005 and all of my assets were take and sold to pay all of my debtors, including my home and my business. I had a personal loan and used the title of a car as collateral. The holder of the title decided not to take the car, but wrote it off as a loss. After 4 years, they still claim that I am the owner of the vehicle and they just hold the lien. They tell me that I am still responsible to pay them back or at least make a deal to get the title back. Until then, I cannot do anything with the car other than let it sit in a garage ... I can't even ask a salvage yard to pick it up. It no longer runs, so it is of no use to me. I am literally stuck with it forever unless I pay it off. According to CitiFinancial, a lien supersedes a bankruptcy unless a judge orders them to pick it up. Is this true? Do I still have that debt even though I flied Chapter 7? I just want to get rid of the car. The catch is they say it's a classic vehicle and it is worth $12,000. Actually it's a junk that has a blown engine, won't start, a bad transmission, broken windshield, torn interior, and the list goes on. How can I just get rid of this? Can they make me pay or just hold on to it until I die? Please advise.


Asked on 12/08/09, 12:11 am

1 Answer from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

Thank you for your question. The answer depends on what you elected to do with the car during your bankruptcy. My guess is that you are still liable for the debt. Do you recall whether you "reaffirmed" the debt?? However, the fact that they will not repossess the vehicle is curious and makes me think that perhaps the debt was discharged and they are seeking to have you make payments in violation of your bankrupty discharge.

I can look up your case online and make a determination. Can you provide me with a case number? From there we can either attempt a settlement or, in the alternative, seek money damages for their collection efforts.

I can be emailed here: [email protected]

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Answered on 12/13/09, 6:56 am


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