QUESTION
Can they still take our car if we filed for bankruptcy?
Asked on Dec 28th, 2013 on Bankruptcy - Colorado
More details to this question:
I have a title loan on my car. We filed chapter 7. We have not made a payment since July on the title loan. My bankruptcy is due to discharge around January 6. We have offered to surrender the car and they have not responded. What happens can they still take the car?
8 ANSWERS
Yes the discharge does not change the secured interest in the property just their ability to collect from you but not the collateral.
Answered on Dec 30th, 2013 at 8:38 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Assuming this is a properly secured loan, yes, they can repossess the vehicle after the stay regarding them expires. Bankruptcy will remove your personal liability on a debt, but does not remove the lien in the property. They can still execute on that lien.
Answered on Dec 30th, 2013 at 8:37 PM
Since you have offered to surrender the car, you should contact the lender to make arrangements to return it. The sooner you get it off your hands, the sooner you can drop insurance on it. Until you surrender it, you remain responsible for anything that happens to the car.
Answered on Dec 30th, 2013 at 8:37 PM
A lender with a title loan retains the right to repossess a vehicle at any time if they are not receiving payment after the bankruptcy closes. In some cases the hassle of repo and auction are not worth the time for a lender to pickup the vehicle. Stay in contact with the lender after the bankruptcy and see if you can arrange its pickup, if not you can keep it insured and drive indefinitely but you may never see the title. You may want to speak to your attorney about redemption.
Answered on Dec 30th, 2013 at 8:37 PM
They can take your car if you Fe behind in the payments. Contact the lender and request that they pick it up. If they don't, or say they aren't going to, keep it insured and drive it.
Answered on Dec 30th, 2013 at 8:35 PM
Personal Bankruptcy Attorney serving West Jordan, UT
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Robert S. Payne, Attorney at Law
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Yes, if they have a security interest in the car and if you have not made payments, they can still repossess the vehicle. Bankruptcy discharges your personal liability for the loan, so they cannot sue you personally, but they have every right to collect their collateral.
Answered on Dec 30th, 2013 at 8:34 PM
When people ask me if "they" can take something, I have to wonder who you mean when you say "they." The creditor holding a title loan owns the car you are driving. After the bankruptcy is over, the owner of this vehicle can take it from you unless you reach an agreement to pay for it.
Answered on Dec 30th, 2013 at 8:34 PM
Deborah F. Bowinski
Yes, they can repossess the car once your discharge order is entered. If you don't want to be stranded you should consider making arrangements to voluntarily surrender the car.
Answered on Dec 30th, 2013 at 8:32 PM