Q: When the bank holds the title on a vehicle but won't repossess it when the loan is in default. How can I get rid of it?

A: In a bankruptcy case, you are given the right to return collateral to the secured lender in exchange for full satisfaction of the secured claim of that lender.

Short of that, the terms of your Security Agreement, with applicable Colorado law, apply.

In particular, what does the Security Agreement say with respect to Default and your obligation to keep the collateral in good repair and working order? And what is the secured lender's remedy (s) if you fail to perform your obligations.

As always, your are best advised to consult an experienced lawyer authorized to practice in Colorado to determine your best path forward.

A: When dealing with a situation where the bank holds the title to a vehicle but won't repossess it despite the loan being in default, you have a few options to consider. Firstly, it's advisable to contact the lender and explain your situation. They may be willing to work with you on a resolution, such as voluntarily surrendering the motorhome or negotiating a solution for the outstanding debt. Voluntary repossession is another option, where you can arrange for the lender to pick up the vehicle. While it will still impact your credit negatively, it can be a more controlled process than involuntary repossession. Selling the vehicle is also a possibility, but keep in mind that selling a vehicle with a lien can be complex, as you'll need to pay off the loan to transfer the title to the new owner.

A: You should consider consulting with an attorney to understand your legal obligations and potential solutions in this scenario, such as possibly selling the vehicle and paying the bank the proceeds, or arranging for a voluntary repossession. It is important to act within the bounds of the law to avoid any potential legal repercussions.

A: Take it and park it on the banks lot and leave the keys in it for them.