In 1998 my wife took out a loan in which she placed her car as collateral. The title was to be held by the lending agency. In 2000 she filed for bankruptcy citing the vehicle as protected property in her posession. No complaint or request for hearing was filed by the lending agency at the time. In late 2000 the lending agency "wrote off" as non-collectable the original loan due to the bankruptcy notification. This year, through a series of communications in relation to the title on the vehicle the lending agency has declared the loan re-opened, applied four years of interest and fees - substantially increasing the amount owed - and is demanding payment on the loan or return of the vehicle. My questions are: (1) Can a loan that has been "written off" and declared non-collectable be collected? (2) Does the bank actually still hold ownership rights on the vehicle? (3) If able to re-open the loan are they able to add-on the interest and fees? and (4) In conversations with bank representatives they have stated they made no efforts to contact anyone on the loan because it had been determined non-collectable due to the bankruptcy; Can this be regarded as a waiver of rights on their part?
I am not that fimilar with BK stuff but from what I do know in other circumstances the written off loan could be collectable with interest and fees according to the contract you signed. with the SOL in mind absent from any C&D. reporting the TL may be another issue. mayabe NANA would know this answer or ask an attorney this question at Lawguru.com
