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Motorcycle wasn't picked up after bankruptcy was filed YEARS ago, can I get a title??
Anonymous3 views3 answers
My brother and his wife filed bankruptcy two years ago. They had a lawyer, and he said that the statue of limitations for the bank was one year to reclaim my brother's motorcycle. So we are now a year past the expiration of statue of limitation (according to the time frame given by the lawyer).
My brother and I had an agreement in which I would purchase the bike. I have been stopped by Washington State Patrol, and there was no issue with the bike. The bike still has a valid registration, and has been renewed a few times since the bankruptcy. However, as I get ready to move out of state it becomes necessary for me to obtain a title. Is it possible?
I've heard you can take the bank to small claims with a $0.00 claim and request that the bank abandoned the vehicle and get a title. Truth?
I haven't heard anything like that. A debtor can return to bankruptcy court and ask to redeem the vehicle for a small amount, but would have to pay to reopen the case.
In the alternative, some states have DMV laws that provide for a person to claim title to an abandoned vehicle. Check your local DMV laws.
Hope this perspective helps!
I wonder if the lawyer said that to you, our few receive that secondhand from your brother and his wife…
Ask for the statutory citation so you can check this urban legend for yourself
False. This is a rather common occurance. The vehicle has not been "abandoned" in the traditional sense - the bank isn't the "owner" of the vehicle; it is the lienholder. The reason why the bank didn't repo the vehicle is simple math - it wouldn't be economically worth it for them to do so (the repo costs, added to the auction costs, etc.) would outweigh what they'd get at auction for it. Hence, they "forgot" about it. Now, the problem is that your brother cannot sell or transfer the vehicle without getting the lien release from the lienholder, which it isn't going to give until it gets paid. So, you can't take the vehicle with you - you don't own it and never will until the lien is cleared. Similarly, you can't junk the vehicle since the junkyard, legally, needs a clear title to take it from you. So, you brother is stuck with it forever until the lien is cleared. Contact the bank and see if they will issue a lien release for a settlement on the debt - make them a fair offer, and they may just agree.
