Creditor Question on BK7

[mbrooks]

What is the name of your state? CA

When filing Ch7 BK - My brother in law has a creditor, Funancing/GEMB, the high balance on his account was 10,114 and is now 3,111. Apparently its a retail installment account that includes a dirtbike and riding apparel, etc... About two years ago a large chunk was directed to pay off the dirtbike to get the pink slip on the bike because it has been given to someone else within the family BUT the finance company didnt adjust the payment paying off the bike hence no pink slip.

This finance company entered the account as "Charged off" in 2005 and they never have attempted to further collect on this debt.

If this account is included in the BK what will more than likely happen? How will he be able to get the pink slip?

 

[Who's Liable?]

What is the name of your state? CA

When filing Ch7 BK - My brother in law has a creditor, Funancing/GEMB, the high balance on his account was 10,114 and is now 3,111. Apparently its a retail installment account that includes a dirtbike and riding apparel, etc... About two years ago a large chunk was directed to pay off the dirtbike to get the pink slip on the bike because it has been given to someone else within the family BUT the finance company didnt adjust the payment paying off the bike hence no pink slip.

Unless agreed upon by the finance company, which is highly unlikely, paying off "just" the dirt bike is not an option. Your brother needs to pay-off the entire amount due to release the pink slip.

If this account is included in the BK what will more than likely happen? How will he be able to get the pink slip?

He won't get the pink slip... If he did not pay for said item, he does NOT get a pink slip. Once the BK has been discharged, the finance company can repo said dirt bike from your brother. IF your brother does NOT have said item, it would be his burden to return said item.