boat title question

loxboy1 · Jan 27, 2013

first off let me start by introducing myself, im alex im new here, ive got a 96 24' angler walkaround, 200 merc outboard.

now my issues is...... my boat wa given to me when i was a kid by my parents when they got divorced it was my dads, they whent trough a bankrupcy durring the divorce, so the boat loab was cleared, this was about 10 years ago. ive never had any problems re registering the boat and insuring it every year, but now im wanting to sell it to upgrade to a bigger boat but there is no title, and the old finance company that originally had the loan before the bankrupcy got bought out buy a corporate loan company and have no record on the boat so there fore no title, last summer i tried to get a title for it but couldnt i did a title search and found there is still a lean on the boat for the ammount owed on the old loan but i have paper work saying it was cleared, i presented it to the company who bought out the company that originally had the loan and they still have no record, how the heck do i get a title so i can sell it, or would i be able to sell it with out the title and the new owner register it in there name?

thanks

81_chapparel194 · Jan 27, 2013

Re: boat title question

take the issue to your local magistrate or probate judge. show them the final decree on your bankruptcy and tell them that the title search shows a lien on the boat. the judge should do a court order for the lien to be removed. the original title isnt a problem as once the judge orders the lien satisfied and cleared you apply for a replacement title . easy but time consuming

wrench 3 · Jan 27, 2013

Re: boat title question

You probably need to hear from a lawyer, and I imagine there are quite a few registered to the forum, but. To my way of thinking, if the company that has the lean on the boat has no record of any money owing against it, why wouldn't they clear the lean.

Home Cookin' · Jan 28, 2013

Re: boat title question

bankruptcy does not clear liens, only personal debt (owed by your dad) so at that level, the holder of the title is entitled to repo and sell the boat, but it can't pursue the debtor (dad) for the deficiency (balance after applying the sale less cost of sale). The lien is not cleared.*

In your case, however, the 10 years might be the solution. state by state, there are laws that say that after a certain period of time some claims (debts) can't be enforced and some liens expire. You have to know that law in YOUR state; it doesn't matter what someone else did in his state.

Right now you own nothing. That $5000 boat is not yours. If you want a free $5000 boat you are going to have to pay a couple hundred to a lawyer to get it straight (or spend twice that much time yourself). It might be real cheap. go to a good lawyer who does collections and pay him hourly, or a good lawyer who does consumer bankruptcy, and pay him hourly. Hopefully your dad is still around to sign what he needs to. Maybe even hire your dad's bk lawyer. point is, you will have to spend money to protect your asset. And don't forget the trailer!

*There are processes to clear liens in a bankruptcy, but they are seldom used in a consumer case, so I am assuming the typical path.

etracer68 · Jan 28, 2013

Re: boat title question

You knew that when you were paying for the registration, that the boat was not in your name. Instead of just taking the stort cut then, you, and your dad should of taken care of it then. Now it will cost you. Sorry but you made your bed, and now your going to sleep in it. I know its easy to say" il worry about it when the time comes, well that time has arived. I would make sure the trailer is taken care of too. Some states, a boat, if an outboard, needs registration for the motor too. Hope things go well.

81_chapparel194 · Jan 28, 2013

Re: boat title question

Home Cookin' said:
bankruptcy does not clear liens, only personal debt (owed by your dad) so at that level, the holder of the title is entitled to repo and sell the boat, but it can't pursue the debtor (dad) for the deficiency (balance after applying the sale less cost of sale). The lien is not cleared.**QUOTE]

well speaking from experience unfortunately about 10 years ago me and my wife fell on very rough times due to a lot of very expensive medical bills that accumulated due to no medical insurance offered at either of our jobs. but we had to file chapter 13 bankruptcy and besides the medical bills we included two vehicles and a mobile home we owned at the time. (still own as rental property) but in 4 years and 10 months after the bankruptcy was paid out, yes we paid a monthly single payment to the bankruptcy court trustee and then it was dispursed out to our creditors accordingly per the bankruptcy judges orders as what was owed to whom. basically all unsecured debt such as credit cards and medical bills were wiped off so no monies paid to them. but all secured debt (wifes car, my truck,and even the mobile home) we kept and the lawyer negotiated a settlement amount directly with the creditors that was a little less than actual balances owed, before we went to court. so it all had to be in a written "plan" and delivered to the judge and trustee as to whom to disperse what amount of money monthly for 4 years and 10 months. once we recieved our final decree from the u.s bankruptcy judge saying all secured debt was paid in full and all liens satisfied and if we received any contact from our creditors asking for additional money before deeds/titles could be released then we were to report them to the court for strict discplinary action. in about 6 weeks later we received titles for both vehicles lien free.. and our mobile home deed came to us lien free. so YES bankruptcy can clear liens on filed items.. there are different chapters (7,9,11,13) chapter 7 and 13 for people and 9 and 11 for businesses. so it will depend on which chapter the OP's father filed. if it was 7 i would think that the finance company would have sent repo joe out to collect as you have to voluntary relinquish ANY AND ALL secured debt that is filed in the bankruptcy. i will probally catch flack for admittingly filing bankruptcy but i honestly had no choice as the medical bills alone were enourmous plus credit card debt from trying to live while unable to work and no income coming in. short term disability is a joke at the least. me and my family would have starved to death waiting on them to assist. but things are better for me today at least we have medical insurance now. slowly rebuilt credit back up andfighting like hell to keep it up.

NYBo · Jan 28, 2013

Re: boat title question

Welcome to iboats!:welcome:

Yep, you need to lawyer up before going any farther. No sense throwing good money after bad. Find out if you really own the boat or not.

81_chapparel194 said:
i will probally catch flack for admittingly filing bankruptcy

Yes, shame on you for having the nerve to get sick! There, how was that for flak?

I'm glad you've turned it around.:triumphant:

Bamaman1 · Jan 28, 2013

Re: boat title question

I worked for a large national finance company, and an quite experienced in UCC's and Titles. Maybe I can help you.

You should contact the "new" finance company to talk. You might have to mail or fax them a copy of the title info on record you received from the State. Chances are the loan was charged off prior to their buying the assets of the old company, and that the old company essentially abandoned the boat as collateral on their loan. As you said, they probably cannot find record of the account.

Ask the "new company" to give you a lien release form. With a lien release form, you can send the lien release with an application for duplicate title. With a "clean" duplicate title in your father's name, you can get him to reassign it to you and apply for a title in your name.

Home Cookin' · Jan 29, 2013

Re: boat title question

true, a paid-out chapter 13 usually results in paying secured debt and getting the title released, not because of the bankruptcy discharge but because it was paid. When paid, the finance company usually sends the title back. In 81-chap's case, they did. In the OP'
s case, they didn't, leading me to believe it was a 7 and not a 13. Also true that after a 7 they would usually repo the boat/car but not always. As with most legal situation we need more and better facts, and bankruptcy is more exception than rules.

81-chap, glad it worked out for you and you earned it by making all the payments like you were supposed to. The system is there for the "honest debtor with honest debts."

That's all from me on this topic; getting too close to Real Life.

loxboy1 · Jun 25, 2013

Re: boat title question

thanks to everyones responces, im going to contact the new finance company and try and work somthing out, neather me my dad nor my mother up until last year that there was an issue with the title, they thought they had it in the stack of papers from the bankrupcy, it wasnt untill i asked to transfer the boat in my name to sell it to get a bigger boat, that the sh*t hit the fan.

metriccrescentwrench · Jun 25, 2013

Re: boat title question

81_chapparel194 said:
....i will probally catch flack for admittingly filing bankruptcy but i honestly had no choice as the medical bills alone were enourmous plus credit card debt from trying to live while unable to work and no income coming in......

It's a sad fact that most individuals in this country who have to go through bankruptcy do so because of medical bills. I know of two families that basically lost everything and had to start over because they dared to have a heart attack. So anyway, no flack here.

And loxboy, it sounds like you're on the right track to getting your issue straightened out. It will be interesting to hear how it works out, as I know absolutely nothing about that process.

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