Is this a towing and storage bankruptcy scam?
Don got a letter last week offering him $1000 for the car he's giving up in his Chapter 7 bankruptcy.
Don owes way more on the car than it's worth, and he's using bankruptcy to give it up. So why would someone offer him $1000? Well maybe this is a towing and storage scam.
A towing and storage company has the right to be paid. and if they are not paid on time, they can take and sell your car--as a paid for car--and keep all the money for themselves.
The letter Don got promised they would immediately "contact the lien holder and arrange for the return of your vehicle." But suppose they claim they are owed for towing and storage and sell the car instead.
That might be legal for them.
But Don has a risk if he takes that offer. When Don, or you, file bankruptcy, you are required to keep your property safe. and if you don't, your bankruptcy can be denied discharge.
So if somebody offers you $1000 for your upside down car, be real careful.