Surrendered car bank doesn’t want

Letter to “Ask Leon”

I surrendered a car in bankruptcy and the bank doesn’t want it back because it isn’t running. Won’t give me the title or a statement with a note stating they don’t want the car. Car is in storage and I don’t want to pay storage. Nobody will take car because of the lien holder on the title. Can’t donate to anybody without title. Bank talked to lawyer about if donated they will release title to the cause. Called several donation places gave bank number and they are not replying. Can I have the car towed to the banks parking lot and leave it and not have any trouble since it was surrendered in bankruptcy. Who is legally obligated for the car?

Leon Says…

You are legally responsible for the car. In some jurisdictions, you can be held responsible for towing, storage and sales costs if you abandon it and the city has to pick it up. There is a procedure in bankruptcy law that allows you to buy the car for what it is worth, “as is.” Ask your lawyer about making a motion to do that under bankruptcy code section 722. Unfortunately, it will cost you money to pursue it. You could always check with your city and see if they go after the registered owner to recover expenses when an abandoned vehicle is impounded. And finally, since the bankruptcy code requires you to surrender it to the secured lender, I rather like your idea of towing to the banks parking lot. Ask your lawyer about that option before you do it.