Two liens question

[vage008]

Jurisdiction

South Carolina

I have a car with two liens on the title. The first one is by a bank who put the lien on it after I filed chapter 7 when I couldn't repay my credit card debt. The second one, which occurred after, is a mechanic's lien when I couldn't repay the repairs. Who would receive ownership of my vehicle?

The state that this happened in is actually Virginia, not South Carolina.

 

[adjusterjack]

Something's missing.

How and why did the bank put a lien on your car? What did that have to do with the credit card debt? Or did you have a loan on the car that you also discharged? When did all that happen?

How long after your bankruptcy did you incur the debt to the mechanic?

I suggest you start from day one and move forward chronologically.

 

[vage008]

Chronologically, the car was bought using a loan through a bank, then title is sent to the bank electronically. The car loan is completely paid for, but title was never mailed, my guess is because it was electronic. Afterwards, from the same bank I got a credit card and eventually built up debt that I could repay. I filed for bankruptcy, and as a result the bank withheld the car title. About 5 years later, I had to get the car fixed, but due to a slow down in work and unexpected medical expenses I couldn't pay for the repair.

 

[army judge]

Chronologically, the car was bought using a loan through a bank, then title is sent to the bank electronically. The car loan is completely paid for, but title was never mailed, my guess is because it was electronic. Afterwards, from the same bank I got a credit card and eventually built up debt that I could repay. I filed for bankruptcy, and as a result the bank withheld the car title. About 5 years later, I had to get the car fixed, but due to a slow down in work and unexpected medical expenses I couldn't pay for the repair.

After many years, and with the rapid depreciation in car values, no one might get a darn thing.

In the scope of things, the lender's lien takes precedence over the mechanic's lien.

Let's say you owe the bank $6,000.
You owe the mechanic $500.
Let's say the car is worth $5,000.
Car is sold at auction for $3,000.
The bank is still owed $6,000, but the mechanic is owed $500.
The bank might pay the mechanic $500 from the three grand they received.

Banks aren't prone to giving away money.

The bank might decide NOT to do so, then mechanic has a choice to make.

She can sue you, if she still wishes to pursue the matter.

In the end, based upon my little scenario, you still owe the bank $3,000, and the mechanic $500.

YMMV