Legal Question in Bankruptcy in New York

Bankruptcy and leins

An acquaintance wants to sell me a motorcycle that she financed a few years ago. She filed bankruptcy three years ago before paying the motorcycle off so there is still a lein on the title. No company ever came to claim the bike back. Is this motorcycle legally hers or can the leinholder still claim it after so many years? If I purchase this motorcycle do I assume responsiblity of the outstanding balance?

Thank you.


Asked on 10/24/04, 9:11 pm

1 Answer from Attorneys
Jay Fleischman Shaev & Fleischman LLP

Re: Bankruptcy and leins

If you acquaintance has paid for the motorcycle loan in full since filing for bankruptcy, then the lien should be released; once paid in full, the motorcycle is hers to transfer.

According to NY Vehicle & traffic Law section 2121, "Upon the satisfaction of a security interest in a vehicle the lienholder shall immediately upon clearance of payment execute a release of his security interest in a

manner prescribed by the commissioner and mail or deliver the release to the owner or any person who delivers to the lienholder an authorization

from the owner to receive the certificate."

To be sure that the payments have been made in full, the current owner should contact that finance company. Under section 2122 of the Vehicle & Traffic Law, "a lienholder shall, upon written request of the owner, disclose any pertinent information as to his security agreement and the indebtedness secured by it."

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Answered on 10/25/04, 8:15 am


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