QUESTION
Can I file bankruptcy on $10,000 title loan that seems to be going up instead of down along with some medical bills I owe?
Asked on Jan 14th, 2015 on Bankruptcy - Colorado
10 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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The title loan is secured by a vehicle; you can't discharge that debt without surrendering the vehicle.
Answered on Jan 26th, 2015 at 6:00 PM
A title loan is a secured debt. Even with bankruptcy, if you don?t pay the debt, you will lose the wheels. Nothing says you can't file bankruptcy on this debt as well as your medical bills, but the bigger question is whether bankruptcy is in your best interests. For 80% of the people I see, other options are better, unless the total debt to be eliminated exceeds $25,000.
Answered on Jan 15th, 2015 at 6:52 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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In order to file bankruptcy in Kentucky - you must meet the means test, You must list all of your assets and all of your debt. If you fall below the median income level for the area in which you live, you can file for Chapter 7 and discharge the debt. If the debt is secured with collateral, you will need to determine if you will keep the collateral, surrender the collateral or make other arrangements. That is a decision to be made with benefit of counsel. Seek out a competent bankruptcy attorney. If you don't qualify for Chapter 7 - you may be able to successfully complete a Chapter 13.
Answered on Jan 15th, 2015 at 6:51 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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On a title loan, you can file bankruptcy if you're willing to lose the car. The medical bills would be discharged.
Answered on Jan 15th, 2015 at 6:50 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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You can certainly file and you can certainly discharge your liability for the $10,000 loan and any medical bills. But bankruptcy will not void the lien that the loan company has on your car title. Depending on some facts of your case, you may be able to modify the lien but only a qualified bankruptcy atty could answer that after a thorough consultation.
Answered on Jan 15th, 2015 at 6:50 PM
Most likely yes. But your debts are only part of the equation. There is also something formally known as the "means test" which looks at your income and expenses. That determines which chapter of bankruptcy relief you are eligible for. In the end, though, this sort of question is best answered by consulting with a local bankruptcy attorney.
Answered on Jan 14th, 2015 at 11:38 PM
Yes, you can, but a "title loan" means you will have to surrender your car for whatever the lender can get for it. There is a process by which you can "redeem" a car by paying its fair market value if it's worth less than you owe, and there are different ways of accomplishing that. If you want to attempt that, you would be wise to hire an experienced bankruptcy attorney to help you through the process.
Answered on Jan 14th, 2015 at 11:38 PM
Yes, those debts are subject to discharge in most cases.
Answered on Jan 14th, 2015 at 6:46 PM
Yes, you can discharge those debts in any kind of bankruptcy. If they title loan company has actually listed on the title of the vehicle as a lien holder, then they have a perfected security interest and you will have to give up the vehicle in order to walk away from that debt. If they are not a lien holder, then it is an unsecured debt and you can keep the vehicle.
Answered on Jan 14th, 2015 at 6:33 PM
Deborah F. Bowinski
Yes, there is no minimum amount that must be owed in order to file bankruptcy. However, be aware that you will be required to repay the title loan in full if you want to be able to have the vehicle. You could certainly consider surrendering it to the lender and walking away from that transaction completely. If you do that in a bankruptcy they cannot come after you for anything owed beyond the value of the vehicle.
Answered on Jan 14th, 2015 at 6:33 PM