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cfortunato, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 8023
Experience:  Areas of practice: Landlord/Tenant, Bankruptcy, Consumer Debt
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In my Ch13 I listed a secured creditor (motorcycle as collateral)

Resolved Question:

In my Ch13 I listed a secured creditor (motorcycle as collateral) who has yet to file a claim. They claim to hold the note, but admit that they do not hold the title physically. The State lists them as the lien-holder.

I am aware that I can file a claim on their behalf but I am wondering how far to cram down the balance on the dubious note.
Submitted: 4 years ago.
Category: Consumer Protection Law
Expert:  cfortunato replied 4 years ago.

cfortunato :

Hi JACustomer,

cfortunato :

The fact that the creditor does not have the title does not make the note invalid, as a duplicate title can be obtained from the DMV.

cfortunato :

Was the loan used to purchase the motorcycle? If yes, about how long ago was the loan obtained?

Customer: replied 4 years ago.
The loan was used to purchase the bike. It was 11 years ago. The note has been sold twice.
Expert:  cfortunato replied 4 years ago.
Thank you for your response.

The secured portion (the cramdown amount) would be the current market value of the motorcycle, and the balance of the loan would be unsecured (and treated the same as your other unsecured debts).

I think this is what you wanted to know. If not, please let me know.
Thank you.
Customer: replied 4 years ago.

Current market value as determined by whom ? The "blue books" are wildly inaccurate these days. Even then, which index would be applicable: wholesale, trade-in, person-to-person sale, or retail ? Would offer(s)-to-buy from a motorcycle dealer(s) be acceptable to the court ?
Expert:  cfortunato replied 4 years ago.
The Bankruptcy court looks at the Kelly Blue Book private-sale (person to person) value.
Offer(s) to buy from motorcycle dealer(s) would not be acceptable as proof of a motorcycle's current value.
Customer: replied 4 years ago.
Thanks again.

Is there a means within JustAnswer for one to ask questions of a specific expert such as yourself ?
Expert:  cfortunato replied 4 years ago.
You're welcome again!

Yes - if you write, ''To cfortunato, or ''For cfortunato'' at the beginning of your question, only I will be able to answer it.
Customer: replied 4 years ago.
OK, will do, but one final question please.

Why would the lien holder not file a claim despite being noticed three times ?
Expert:  cfortunato replied 4 years ago.
Perhaps the creditor does not understand the process.
It is also possible the creditor thinks by not filing a Proof of Claim, their entire debt will survive the Bankruptcy (the unsecured portion would not be discharged).
cfortunato and other Consumer Protection Law Specialists are ready to help you

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