QUESTION
What will happen if I took out a loan and secured it with a title and the didn’t put a lien on the title?
Asked on Jul 21st, 2013 on Bankruptcy - Michigan
More details to this question:
I took out a small loan from a loan company (not one of those title loan places) and I secured the loan with my boat. Low and behold the titles showed up in the mail with no lien holder. The guy from the loan company is also calling and asking for the titles because he messed up. He has stated that he screwed up many times. I haven't taken the titles to him yet. I'm about to file chapter 7 if I keep the titles can they still come after the boat if I file chapter 7. Would I be part of any type of fraud?
8 ANSWERS
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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Yes, if you agreed to turn over the title for the loan the lender relied upon your agreement. Keeping the title would be fraud, which could invalidate your bankruptcy on bad faith.
Answered on Jul 31st, 2013 at 9:08 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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They can file a proof of claim in bankruptcy court. They will have to prove their case. You still have the right to file a bankruptcy.
Answered on Jul 27th, 2013 at 2:01 PM
Yes, this would be an example of a type of fraud that could get you into trouble.
Answered on Jul 23rd, 2013 at 11:06 AM
Deborah F. Bowinski
You should retain an attorney before filing your bankruptcy case. Depending upon where you live you might or might not be able to keep and protect the boat if you owned it free and clear regardless of the questions surrounding the unperfected lien against the title. Do NOT file a bankruptcy case on your own without an attorney.
Answered on Jul 23rd, 2013 at 1:10 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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Too complicated to risk answering online or for you to disclose any more than you already have.
Answered on Jul 23rd, 2013 at 1:08 AM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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My opinion would be that you should speak to a bankruptcy attorney, and probably file bankruptcy rather than turn over any title to the vehicle. Generally, if the lien wasn't recorded, it won't be effective. However, there are other issues to consider. It is best that you call right away to discuss your options, and how to get your case filed as soon as possible.
Answered on Jul 23rd, 2013 at 12:55 AM
Regulatory Attorney serving Spokane, WA
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Deissner Law Office, P.C.
Well I suppose you agreed to give him a lien. But if you were to file bankruptcy before the paperwork was completed he would be out of luck. Not fraud as I see it but you would need to disclose all this to the BR court and let the trustee sort it out.
Answered on Jul 22nd, 2013 at 2:57 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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The chapter 7 trustee will sell your boat after setting aside the loan company's avoidable unperfected lien.
Answered on Jul 22nd, 2013 at 2:53 PM