Expert: Terry Leeders - 8/12/2008

Question
I need to refile do to some changes in my income.  It's in the process of getting dismissed.  I own a small boat that is 18 years old.  Once ago there was a loan in the amount of $14,000.  Back when I originally filed for Chapter 13 the boat was behind and so was the storage fee.  The trustee granted me to keep the boat and make payments on the mortgage rears.  I went to make the payments on the boat i was behind and the bank with out notice charged off the balance.  When I went to clear up the storage amount, the marina put a "mechanics lein" on the boat and sent it to auction.  The marina owner gave me the boat back after I made good on the storage fee.  He mentioned to me that he sent certified mail to the bank to come and get their boat.  The bank never responded.  So for 3 years now I have been using this boat all the while not paying for it.  Not once has any institution contacted me in regards for repayment.  Granted I don't own a clear title because the bank has their lein info on the title.  My point is this is no longer a debt as it once was upon the original filing.  should I mention this or not to my attorney or the trustee if he/she were to ask about it.  I could speak the truth as I just did.  Or I could say it went to auction and I don't have it.  In the end I would like to keep the boat.  but what shall I say or do about this?  Thank you.

Answer
You will have to pay the lien on the boat to the bank. You can include that in your next case.  You can also include any outstanding storage fees, and marina fees.   There remains a lien on the title to the boat, so to do anything with it, you will need to pay that off.