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Car Title Loans after BK

Dozier
Established Member

Car Title Loans after BK

Hi guys and girl I'm new to the BK community and I have a question. I've filed and my 341 is 6/11/19 so coming up I have a title loan on my car and I included it in my BK my question is can that be included in the BK and what happens afterwards do I get my title ? Do they come after my car? What happens? I have a friend that done the same last year and he has'nt heard anything from the title loan company since but he has his car but they still have the title. Is it a way he can get his title back? Thanks for any info giving love the info on the boards I really enjoy reading up here so much that i decided to join.

Message 1 of 9
8 REPLIES 8
pizza1
Community Leader
Super Contributor

Re: Car Title Loans after BK


@Dozier wrote:

Hi guys and girl I'm new to the BK community and I have a question. I've filed and my 341 is 6/11/19 so coming up I have a title loan on my car and I included it in my BK my question is can that be included in the BK and what happens afterwards do I get my title ? No.  You have a title lien against your paid off car. The BK relieves you from personal liability, but not from the lien itself. Do they come after my car? Yes. having a title loan doesnt just "go away" once you file BK7, the lien remains. They will want to repossess the car to sell it in order to settle the lien amount they are out now. What happens? I have a friend that done the same last year and he has'nt heard anything from the title loan company since but he has his car but they still have the title. Is it a way he can get his title back? Only by paying back the loan. You dont get to file BK7 , wipe out the lien, and still get to keep the car. Only way to keep the car, and get back the title free and clear is to pay it back. I would refer to your attorney or what you should or can do.  One Option is to let them come get the car to satisy the lien,  and you get a different vehicle. Thanks for any info giving love the info on the boards I really enjoy reading up here so much that i decided to join.


 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013...I'm in the home stretch now!
Message 2 of 9
Dozier
Established Member

Re: Car Title Loans after BK

Thanks pizza1very helpful info. I need to keep my car so I guess I will be paying off the lien. But if I was to get a new car would it be better to get it now or wait until after DC I'm getting offers everyday it seems?

Message 3 of 9
pizza1
Community Leader
Super Contributor

Re: Car Title Loans after BK


@Dozier wrote:

Thanks pizza1very helpful info. I need to keep my car so I guess I will be paying off the lien. But if I was to get a new car would it be better to get it now or wait until after DC I'm getting offers everyday it seems?


Are you a BK7?  The lender cant repossess until after DC.  I would have your attorney deal with them, and let them know that, or if you decide its best to reaffirm the loan, (which isnt suggested, but your attorney can tell them you'll keep the car and continue to pay).   They cant contact you at all right now, as that violates the automatic stay currently in place.  Lots of folks have no issues getting another vehicle after DC.  

 

what is your make/model of vehicle, and how much is title loan?


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013...I'm in the home stretch now!
Message 4 of 9
Dozier
Established Member

Re: Car Title Loans after BK

Yes it is a BK7 I have an 02 Lexus LS430 UL model old car but no payments accept the loan that was for $1800 and I think I owed 1300 or 1400 I havent paid in 2 months and they havent called. Do my lawyer show up at my 341?

Message 5 of 9
pizza1
Community Leader
Super Contributor

Re: Car Title Loans after BK


@Dozier wrote:

Yes it is a BK7 I have an 02 Lexus LS430 UL model old car but no payments accept the loan that was for $1800 and I think I owed 1300 or 1400 I havent paid in 2 months and they havent called. Do my lawyer show up at my 341?


Well if the loan is that small of amount, you could pay it back . I briefly did a KBB on your car, and trade in value is roughly 3300-5000k depending on mileadge etc.., and 3rd party is like 4500-6000k depending as well.  You could keep the car, pay off the loan (not reaffirm but continue to pay), and once pIF, get your title back and then have the option of keeping for awhile without payments, trade it in, or sell it outright 3rd party and get something else.

 

Yes, your attorney accompanies you to your 341. Discuss with them what your best option would be. 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013...I'm in the home stretch now!
Message 6 of 9
Dozier
Established Member

Re: Car Title Loans after BK

OK that's what I'm gonna do thank you for your wisdom and help it was very helpful pizza1. Can't wait to get started rebuilding my credit I want to sell my home or rent it out and buy another in 2yrs FHA I think I can do that.

Message 7 of 9
leonel9
Frequent Contributor

Re: Car Title Loans after BK

As was already mentioned, it is important to speak to an attorney about your options, if possible. Two things come to mind:

 

1) You may not have the option to pay your title loan monthly without reaffirming it. Because of the deliquency, and if the debt is discharged, the title loan company may immediately reposess the vehicle after the discharge is granted. Confirming what they will do will be important.

 

2) Redeeming your vehicle may also be an option. Although @pizza1 shared the KBB values, they may be significantly reduced if the condition of your vehicle is such that expensive repairs are needed to bring the vehicle to a "clean retail" condition. You may be able to redeem the vehicle for less than you owe on the title loan. Again, consult an attorney on this one.

Message 8 of 9
Dozier
Established Member

Re: Car Title Loans after BK

All great advise I cant wait to get to the rebuilding stage.

Message 9 of 9
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