How best to request a release of lien release regarding an auto loan discharged in bankruptcy?

UPDATED: Feb 10, 2012

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How best to request a release of lien release regarding an auto loan discharged in bankruptcy?

Approximately 4 years ago I filed bankruptcy and offered to return my vehicle to the lienholder. They did not want the vehicle, discharged the debt but will not release the lien. The vehicle is no longer operable and I want to take it to the junkyard. In my state if I junk it the yard is required to file for an abandoned vehicle title and I will be fined $500 by the MVD. I have requested the lienholder release the title and they offered to do so for half of the previous debt. Can I invoke laches, affirmative defense or quiet title?

Asked on February 10, 2012 under Bankruptcy Law, Arizona


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You can invoke all of those and the best thing to do is to contact the agency who regulates this lender and then file a consumer complaint. Explain what occurred, that the debt was discharged, that you do not wish to reaffirm the debt and see if the agency can help you square this away. Also check with the Department of Motor Vehicles about this cloud on title and see if you can simply petition for a new title based on your discharge.

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