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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39039
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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I listed a motor vehicle that has a lien against it in my Ch

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I listed a motor vehicle that has a lien against it in my Ch 13. The creditor has not filed a claim on it and has never responded to correspondence. It was listed in the 13 at a value of $500. What is likely to happen if I file a reaffirmation when I convert to Ch 7 ?

Will it be valued at the confirmed value in the 13 ?
Hello again,

In order to reaffirm the debt, you need the lienholder's consent. If the lienholder refuses to correspond, then you can't reaffirm the debt -- simple as that. I'm not sure how much the loan is worth, but I don't see any reason why you would reaffirm a debt on a $500 vehicle. You can pay off the loan, if you wish, whether or not you reaffirm, and if the vehicle value is only $500, then there is little likelihood that the lienholder will repo the vehicle, given that the repo cost is probably more than the vehicle is worth.

Hope this helps.
Customer: replied 3 years ago.

It's a motorcycle and it's value is a matter of debate because of its age, condition, and all of the accessories that were added to it after it was bought in 2001. Can I still file a claim on their behalf since I can get no response from them ?

A debtor can file a proof of claim on a creditor's behalf. Bankr. Code 501(c). However, if there is a deficiency balance owed on the secured claim, then the failure to file the proof of claim operates to discharge the undersecured claim amount, and none of the debtor's assets will be used to pay the creditor for the undersecured amount. In re Bisch (9th Cir. BAP 1993) 159 BR 546, 549.

So, it may not be a good idea to file a proof of claim for the lender.

Hope this helps.
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