Q: Arizona: creditor won't repossess or release lien on motorcycle of deceased ch7 filer
The executor/beneficiary lives in NC and does not ride motorcycles. The bike is at a dealer in AZ and they want to get rid of it. The creditor has stated no interest in repossessing but will not release lien. In some states that is a violation of bankruptcy code. There is no money in the estate to pay the loan off. The executor/beneficiary told the dealer they could have the bike if they could get the lien released. They cannot.
A: If the creditor refuses to repossess the motorcycle or release the lien, and assuming the debt was discharged in the Chapter 7 bankruptcy, you may need to reopen the bankruptcy case to file a motion to compel the creditor to act. It’s also possible to negotiate with the creditor, explaining that the asset is a burden on the estate and offers no recovery value to them. If these avenues fail, you could consider filing a complaint with your state’s attorney general or the Consumer Financial Protection Bureau. An attorney can assist you in exploring these options, determining the best course of action based on the specifics of your case, and ensuring your rights and the estate’s interests are adequately represented and protected.
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