QUESTION
If I file bankruptcy, can I include a title loan of a car I no longer have and will I have to repay the loan?
Asked on Mar 29th, 2013 on Bankruptcy - Colorado
16 ANSWERS
You could and would include the loan and not have to pay it.
Answered on Apr 03rd, 2013 at 8:40 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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You will have to pay the title loan in order to keep the car, even after a chapter 7 bankruptcy.
Answered on Apr 01st, 2013 at 9:45 PM
David M. Axinn
The answer is yes: you can, and in fact are required to include all of your debts. I am assuming that this is a repossession, and there is a balance still due on the loan. Whether you would make any payments might depend on whether this is a chapter 7, or a chapter 13 (payment plan).
Answered on Apr 01st, 2013 at 8:00 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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Bankruptcy discharges your personal liability, but the lien will remain. The title loan company can take your car and auction it to satisfy their lien. You should talk to an experienced debt relief attorney to see what your options are.
Answered on Apr 01st, 2013 at 7:54 PM
William Rhymer
Yes, you should list it in the case. What will happen depends on what happened to the car.
Answered on Apr 01st, 2013 at 2:52 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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It is now an unsecured debt. It is included in the bankruptcy and MAY be dischargeable. How did you lose the car? If you sold it, it is possible that the sale was a conversion and that you converted the loan company's collateral. That might be a problem. On the other hand, if your spouse got it in a divorce, that is a different matter.
Answered on Apr 01st, 2013 at 1:21 AM
2 Awards
How is it that you no longer have the car if it was a title loan? My concern is that the creditor may be able to allege fraudulent transfer or conversion and attempt to deny your discharge.
Answered on Apr 01st, 2013 at 12:32 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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If you file bankruptcy, the creditor you mention will only have a general unsecured claim, and nearly always that means they get nothing. But the disappearance of the car may raise an unpleasant question: what happened to it? And if you sold it, the money is supposed to go to the secured party. Be ready to answer some hard questions. Good Luck.
Answered on Apr 01st, 2013 at 12:14 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Absolutely. You will definitely list that loan. Any civil liability will be extinguished. The question is why you no longer have the car. If you disposed of it illegally, you may have other worries.
Answered on Apr 01st, 2013 at 12:01 AM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Generally speaking, you can include this type of debt in the bankruptcy and discharge (eliminate) it. However, please keep in mind there are exceptions to discharge of debts, such as fraud and willful and malicious conversion. As long as one of the exceptions does not apply, then this debt would be dischargeable.
Answered on Mar 31st, 2013 at 11:00 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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If you did not dispose of the collateral with intent to defraud the title loan lender (for example, if it was totalled in an accident, etc), a bankruptcy filing should be able to discharge the debt to the title loan. Unfortunately, since your question does not provide enough facts, the foregoing answer is the best answer I can provide.
Answered on Mar 31st, 2013 at 10:59 PM
bankruptcy Attorney serving Meriden, CT
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Law Office of William E. Carter, LLC
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In most instances a bankruptcy will discharge the type of debt you are asking about.
Answered on Mar 31st, 2013 at 10:59 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Yes you can and must include the debt. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Mar 31st, 2013 at 9:32 PM
You do not have to repay the loan and your car can be included.
Answered on Mar 31st, 2013 at 9:17 PM
Bankruptcy should discharge that debt. However, I would advise you to discuss your issue in more detail with an attorney.
Answered on Mar 31st, 2013 at 9:16 PM
Deborah F. Bowinski
What happened to the car?
Answered on Mar 31st, 2013 at 9:13 PM