What to do if a lienholder has not picked up surrendered vehicle?

I filled for Chapter 7 in 04/10 and it was discharged 07/09/10. I included our 2009 carfor surrender. The lienholder has not notified me for pick up still. I have it insured and am still driving until they pick it up. Is this OK? How long should I keep it if they still do not pick it up? I have heard of people having vehicles for a couple of years without lienholder picking up vehicle? However this one is still worth money. I owed $17,000. I understand that I have no title but I do not mind continuing to insure and register and drive as long as I am not liable. Even on my credit report it shows I owe nothing. So I know that they know my bankruptcy has been discharged of this liability?

Asked on September 11, 2010 under Bankruptcy Law, Arizona


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

IF you had legally registered the vehicle and properly insured it, it is now up to the lienholder to not only repossess car but ensure it prevents you from reregistering the vehicle.  While your loan is now discharged the lienholder can give you an option to reaffirm your debt, keep the car and pay off the loan.  Of course, this can make moot the point of a bankruptcy discharge but if you choose to keep the car, this can be one method of doing so.  If you do intend to keep the vehicle, see if the lienholder can help you by erasing negative credit reporting from your credit report.  It won't make the bankruptcy disappear but it may help.

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