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Creditors and Bankruptcy/How long does it take for a creditor to repossess ATV's after bankruptcy is discharged?

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Expert: Brian V. Lee, Esq. - 3/22/2011


Question
My husband and I filed a Chapter 7 Bankruptcy in WA state in July of 2010. It was discharged in September of 2010. We had 3 ATV's that were financed through Polaris Industries with an HBSC credit card. The ATV's were not paid off and we did not reconfirm the debt.

We have not made a payment on the ATV's in 2+ years. The creditor still has not repossessed the ATV's.

Is there a general time frame when the ATV's may be picked up or should we just "offer" them back to the creditor? We have been told by a friend that "maybe the creditor will never pick them up and we should just plan on keeping them." We've also been told that Polaris in the past has released titles to clients even after they've filed bankruptcy.

Your advice is appreciated!

Answer
The alacrity with which a creditor will repossess collateral depends largely upon (1) the policy of the particular company, (2) its perceived valuation of the asset, and (3) whether it believes the borrower can repay the deficiency between the repo/auction price and the loan balance.

The responsible thing to do is approach the creditor and offer to voluntarily surrender the collateral.  If they're beat up, tell them.  Offer the odometer reading.  If they express an unwillingness to repossess, offer to pay their costs for the titles.


Brian V. Lee, Esq.
Virginia debt lawyer
http://www.lee-legal.com

Creditors and Bankruptcy

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Brian V. Lee, Esq.

Expertise

All questions related to consumer and business bankruptcy, debt management, and personal finances are welcome. Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. Feel free to visit my All About Bankruptcy blog for more information.

Experience

Serving clients in the DC-metropolitan area since 2005, I am licensed in Virginia and the District of Columbia. I have provided counsel to hundreds of clients with a wide variety of complex legal and financial issues. * Bankruptcy Chapter 7 * Bankruptcy Chapter 13 * Bankruptcy Chapter 11 * Bankruptcy Terms * Foreclosures * Mortgage Issues * How to Save Your Home * How to Rebuild Your Credit * Property You Can Keep * Car Repossession * Debt Test * Tips for Consumers in Debt * What to Expect in Court * Washington, D.C., Exemptions * Virginia Exemptions * Checklist of Key Changes in Bankruptcy Law * Changes in Chapter 7 & 13 Bankruptcy Law * Big Changes in Bankruptcy Law

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DC Bar, VA Bar

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http://www.lee-legal.com/bankruptcy-blog

Education/Credentials
I am a graduate of Rutgers University and the George Mason University School of Law.

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