Who is responsible for the tow bill of surrendered vehicle after chapter 7 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

Free Answers to your Legal Questions by Lawyers.
ask »


Who is responsible for the tow bill of surrendered vehicle after chapter 7 bankruptcy?

My wife had a title loan, and then the vehicle's engine failed and was unrepairable. A few months went by and she was forced to file chapter 7 bankruptcy on this and other outstanding debts. After the discharge, the title loan company refused to pick up the vehicle, so I had it removed from our property. My wife now received a letter from the tow truck company saying she is the owner and responsible for picking up the bill and removing the vehicle from the impound lot. I was thinking the vehicle was owned by the title loan company since we had to surrender it, and the discharged bankruptcy meant she was not able to even sell it for scrap because she didn’t own it anymore. What am I missing?


Contact this Attorney Now

Generally, whoever requests the tow is responsible for paying for it.

Answer Applies to: Nevada
Replied: 3/4/2014

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
Contact this Attorney Now

You owe the bill to the towing company. It is a post petition debt incurred by you.

Answer Applies to: California
Replied: 3/4/2014

GARCIA & GONZALES, P.C.
Contact this Attorney Now

Who ever called the tow company is responsible for the tow bill. Title to the vehicle remains with your wife unless the car is repossessed and sold at auction. The loan company has a lien on the title, but is not the record owner of the vehicle. Therefore, who ever called the tow company is responsible for that obligation.

Answer Applies to: Colorado
Replied: 3/4/2014

Answer By Cate Eranthe
Eranthe Law Firm
Contact this Attorney Now

You ordered the tow after the bankruptcy discharge so it would not be included in the discharged debt. Different result if the owner of the vehicle ordered the tow. Then it would be liable. Just because it was surrendered in the bankruptcy doesn't mean title has changed or that you can add to the initial prepetition debt.

Answer Applies to: California
Replied: 3/3/2014

Answer By Marjorie Guymon
Goldsmith & Guymon
Contact this Attorney Now

Unfortunately, if you incurred the debt post bankruptcy them it is your responsibility.

Answer Applies to: Nevada
Replied: 3/3/2014

Answer By Nick Best
Detroit Lawyers, PLLC
Contact this Attorney Now

If you contacted a towing service to remove the vehicle after a discharge was entered. It is a post-petition debt that remains due and owing regardless of the surrender.

Answer Applies to: Michigan
Replied: 3/3/2014

Answer By Dorothy G Bunce
A Fresh Start
Contact this Attorney Now

Signing a form saying you intend to do something. Even in a court proceeding, isn't the same as actually doing it. Since the title was in your wife's name, she is the owner of the vehicle, and since the tow truck was called after the bankruptcy.

Answer Applies to: Nevada
Replied: 3/3/2014

Answer By Patrick Currin

Contact this Attorney Now

Surrender of property does not constitute acceptance by the lender. Indeed, if it was worthless, why accept it. If you called for services and they were post-petition, that is your wife's bill to pay.

Answer Applies to: California
Replied: 3/3/2014

Law Offices of Eric W. I. Anglin
Contact this Attorney Now

A title loan may establish a lien on the collateral if it is listed on the vehicle title. The lien holder is not the owner of the vehicle simply because your wife opted to surrender the vehicle as part of the bankruptcy. The tow bill and storage fee will be your responsibility since you chose to have the vehicle towed and it will not be a debt that can be included in the bankruptcy since it was incurred after the bankruptcy was filed.

Answer Applies to: Indiana
Replied: 3/3/2014

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
Contact this Attorney Now

If they did not take possession then it is your liability.

Answer Applies to: New York
Replied: 3/3/2014

© 2017 MH Sub I, LLC. All rights reserved.
Terms & Conditions | Privacy Policy | IB Cookie Policy