QUESTION
What do I do if the title loan company has the title and I no longer reside in that state?
Asked on Aug 29th, 2015 on Bankruptcy - Colorado
More details to this question:
I have a $400 title loan out on my vehicle which I fell behind on making payments. Since getting the loan, I filed chapter 13 bankruptcy, then converted to a chapter 7. My bankruptcy has since been discharged. The vehicle is in bad shape and is not in working condition. Vehicle is only worth $600 in fair condition.
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Generally, I advise people to make an offer to the lender to get the title.
Answered on Sep 07th, 2015 at 12:42 AM
Since the vehicle is worth more than the title loan, you could pay the lender to get the title returned to you, as you agreed to do when you took the money from the lender. Or you could ask the lender if they will take less, since returning the vehicle in inoperable condition is not going to be convenient. Expect to pay a lump sum to get the title returned to you in any type of discount situation.
Answered on Sep 03rd, 2015 at 1:25 PM
Derek W. Freeman
If you want the title to your car, you will have to pay the loan. The bankruptcy may have discharged the loan, but the title loan company holds the title to your vehicle. During the bankruptcy case, the automatic stay prevents them from repossessing the car, but once the bankruptcy case is closed, nothing will prevent them from doing so. If you want to surrender the vehicle, it should be a simple matter, and the bankruptcy will prevent the title loan company from trying to collect whatever debt you owed them.
Answered on Sep 03rd, 2015 at 1:21 PM
Call the title company and ask them to pick up the car.
Answered on Sep 03rd, 2015 at 1:19 PM