QUESTION
Can I include my title loan on my bankruptcy 7 and I still keep my car?
Asked on May 22nd, 2015 on Bankruptcy - Michigan
8 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First of all, you are legally obligated to list all your debts and claims (and property) on the bankruptcy papers. Depending on the State in which the vehicle is registered, and the State where you live, the title-creditor may or may not have a lien which is valid in bankruptcy. If it is, then you'll have to make some arrangement to pay the creditor in order to retain the car. Consult a good bankruptcy lawyer. It's almost always worth it.
Answered on May 28th, 2015 at 4:41 PM
You have to pay the lienholder to keep the car.
Answered on May 28th, 2015 at 2:44 PM
Deborah F. Bowinski
No. The loan is secured by the title to your car. You must either surrender the car or pay the loan.
Answered on May 28th, 2015 at 12:47 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Title loans can be complex - although it's called a title loan, some companies don't bother to get the lien recorded on your car. Then you need the trustee to avoid the lien. You must negotiate with the trustee for the cost of this (if the cost is less than the amount of the loan, you're better off) If the some did get the lien recorded, then you need to pay off the lien to get the car.
Answered on May 27th, 2015 at 2:12 PM
You must include all debt in your bankruptcy. To keep your car, you will need to pay off the title loan at some point.
Answered on May 27th, 2015 at 1:08 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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You must include the title loan in your Chapter 7 and then decide whether you want to: 1. Reaffirm the debt (if the secured interest is valid, which it may not be); 2. Redeem the car (by taking out a replacement loan); or 3. Surrender the vehicle. You'll probably need a lawyer to help you with this.
Answered on May 27th, 2015 at 12:22 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Most probably not, the car secures the loan and the creditor will be able to exercise its secured interest.
Answered on May 27th, 2015 at 10:45 AM
You have to list all debts regardless of your intentions of paying them or not paying them. If the lender's security is "perfected" under the laws of your state governing secured transactions, then the lender can force you either to reaffirm the debt or lose your car. In most cases, you would have no problem keeping your car.
Answered on May 27th, 2015 at 10:45 AM