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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I live in Texas. I filed Chapter 13 bankruptcy April of 2011

Customer Question

I live in Texas. I filed Chapter 13 bankruptcy April of 2011 due to being named as a third party defendant in a very large law suit. The plan was Confirmed in October 2011. My terminology might be wrong but it was a "100% plan" and a began making large payment s to my trustee. There were 2 vehicles involved.
In September of 2013 I lost my job and subsequently filed to convert my chapter 13 to a chapter 7. The last payment by my trustee to my creditors was August 2013.
My chapter 7 discharge was signed January 2014.
Neither car was reaffirmed. I have paid off one of the vehicles but on the other one there has been no payments made since the last trustee payment in August 2013. I have not heard from the creditor. The original lender was AmeriCredit.
I contacted AmeriCredit after the discharge to make payments and was directed to Portfolio Recovery Associates. I made a few calls to them but the didn't want to talk to me since I had been involved in a bankruptcy.
Since that time the vehicle has totally dropped of my credit report. There is no evidence of the loan, the collection, or the vehicle. I never received any calls or any other correspondence from either AmeriCredit or Portfolio Recovery Associates. So I just keep driving the car.
Is there any time limit under BK law or contract law where the lender loses the right to the car and the title can transfer to me?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 2 years ago.
The creditor's lien on the vehicle does not change. You can apply for a junk title, and the state will contact the lienholder to see if they still have an interest. After bankruptcy, for secured debts, such as car loans, the lender has the right to the $ owed or the asset back. So, if you have reached out to no avail, that's a good sign. But, be prepared to pay the difference, or negotiate a repayment plan if they still claim interest in the vehicle. Bankruptcy removes your obligation to pay the debt, it is discharged without a reaffirmation, but since the lien still remains, it's unaffected by bankruptcy, they can still take the asset back if you can't work out anything.The other option is to just drive it until they do, don't keep anything of value in it, and keep it insured.Let me know if you have any questions. thanksTerry
Customer: replied 2 years ago.
So the statute of limitations in Texas based on contract law wouldn't apply?
Customer: replied 2 years ago.
I only ask because I thought I read a year or so ago about houses in Florida being awarded to homeowners in similar situations
Expert:  Terry L. replied 2 years ago.
The statute of limitations goes to debt collection, which the bankruptcy removed that. The lien will stay on the title until paid or released by the lender.
Customer: replied 2 years ago.
Customer: replied 2 years ago.
Expert:  Terry L. replied 2 years ago.
you are welcome. please rate me 5 stars! thanks and good luck