[CLBS] Bank wants nothing to do with surrendered vehicle

[Tyler McGee]

Listmates,

Looking for advice on an issue I haven't dealt with. Potential client files chapter 7 case last year. It appears that  went well and the case was closed a couple of months after filing. At the time of filing, she owed about $2,500 on a vehicle that wasn't drivable due to costly repairs (approx. $5,000 in repairs). Wisely, she chose not to sign the reaffirmation agreement when it was sent by the creditor. She never heard anything again from the creditor (who is located in California where the vehicle was purchased) until after the bankruptcy was closed. Creditor contacted her and asked her what she wanted to do with the vehicle, she indicated that she would like to surrender it. She told bank where to pick the vehicle up in Idaho she also told the bank that the vehicle needed big repairs. This California bank apparently decided it didn't want to send someone to Idaho to pick up a piece of junk so told her that they were not going to pick it up, and told her that if she wanted the title cleared they'd remove themselves from the title for a fee of $1,100.

PC is now wondering what to do with the car. She would like to get rid of it, but she says she's called around and no one will take it without a clear title. She says she's explored junking it, donating it, etc, no one wants it with a lienholder on the title. She doesn't wnt to pay the $1,100 to the bank to get it off the title. Normally I would tell her to tow it over to the bank and leave it, but the creditor is in California with no locations here.

Any ideas on how this person can dump this albatross?

Thanks.

Tyler J. McGee
ROY, NIELSON, PLATTS, McGEE & SCHOETTGER
P.O. Box 487
Twin Falls, Idaho 83303-0487
Phone: (208) 734-4450
Fax:  (208) 734-4452