Abandonment of Property after Bankruptcy

Letter to “Ask Leon”

My husband and I filed bankruptcy in 2003 and discharged in 2003. My problem is that after we were discharged we called our car loan place to have them pick up the car that was discharged. They told us that they have abandoned property and are NOT releasing the title to the car. This car is not drivable and we have to license it every year and pay taxes on it, because we have no title to sell it even to a junk yard. Is this normal for them to do this, and is there anyway for us to get the title?

Leon Says…

Here are three ideas that may work. You can call the lender and offer them some money, maybe $50 to release the title to you so that you can have it junked. Explain the situation. Maybe you will be talking to someone who will be more cooperative than the person you spoke to previously. If they refuse, just call them again in a few days and try talking to a different person each time until you finally get someone who will do what you want. My next idea is for you to find a friendly auto repair shop that will help you with this as a favor. They can “lien sale” he vehicle for “delinquent repair and storage fees.” That will get rid of it, as the mechanic’s lien sale takes priority over the auto title. My last idea is to check into parking it on the street, and have the parking authorities tow it away as an abandoned vehicle. You may wind up with a parking ticket, but if it isn’t moved after the ticket is issued they will usually tow it away. Your only liability will be the cost of the ticket. Check with your local parking authority before you do this and find out the procedures and the price of the ticket.