Legal Question in Credit and Debt Law in Pennsylvania

Re: Car Lien

I am not quite sure I understand. Do you still owe on the car? Or does someone owe you?

If you owe on the car loan you need to pay the car loan off before the lien is removed.

Re: Car Lien

You asked about scrapping a car where a lien remains.

A person holding the lien to a vehicle has the right to enforce the lien to prevent a vehicle being sold without the lien being repaid.

My assumption is that either you have bankrupted the underlying loan or that you do not intend to pay it off.

Lienholders generally do not have the right to enforce a lien where the vehicle has no value. In other words, either the lienholder must repossess the vehicle or relinquish the lien. they can't refuse to do both.

This is a fairly new interpretation of the law, and was originally reached in a post-bankruptcy matter. But I am comfortable that it is applicable to your situation.

If the lienholder refuses to either take the vehicle or release the lien you would have to sue to enforce your rights. The good news is that you may be able to have your attorney's fees paid and may even be able to get punitive damages against the lienholder.

Whatever you do, do not abandon the vehicle with the hopes that it will become someone else's problem. I have seen situations where the vehicle was abandoned and years later the owner received a bill from the locality or state for substantial fees for the removal, storage, and eventual disposal of the vehicle.

Regards,

Roger