We filed Chapter 7 Bankruptcy and had our 341 Meeting in mid-October 2007. As of mid-Jan 2008, we still have our vehicle in our possession. Is there a time frame that a creditor has after the 341 Meeting to repossess our vehicle before it would legally be ours free and clear?
-- Anonymous
A.
The lien on your vehicle is not eliminated by your bankruptcy filing or the discharge, when entered. There are no deadlines in the Bankruptcy Code that require action by the secured creditor; usually, though, if you aren't paying, the creditor wants to pick up the car, and reduce its loss.
One strategy that some bankruptcy lawyers have used when the lender will neither pick up the vehicle nor release the lien is to file a motion to redeem the car from the lien for a nominal sum. If the court grants the motion, you would be entitled to a lien free title upon tender of the redemption price. Ask your lawyer for guidance.
