An emailer recently asked me if he must pay a title loan company that is holding title to his vehicle if he wants to keep the vehicle. The short answer is that if this emailer files a Chapter 7 bankruptcy, he must continue to pay the title lender in order to keep the vehicle. The year, make and model of the vehicle is irrelevant.
Basically, bankruptcy does not eliminate liens. I usually tell my clients that if they want to file Chapter 7 and keep their vehicles and/or houses, they need to continue to pay the lienholder(s).
There could be options available on reducing the amount that must be paid to the title company holding a lien against a vehicle in both Chapter 7 and Chapter 13, but until those things officially get approved by the Court, the debtor should continue to make payments to the lienholder to avoid a repossession.
This entry was posted
on Thursday, May 11th, 2006 at 12:11 pm and is filed under Bankruptcy Blog.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Please note: LegalHelpers.com encourages readers to engage in conversation. Comments that are submitted are not posted to the site immediately. We reserve the right to edit or alter your comments and/or to remove comments that violate our code of conduct. No comment may contain: Potentially libelous statements; such as accusing somebody of a crime, defamation of character, or statements that can harm somebody's reputation. Obscene, explicit, or racist language. Personal attacks, insults, threats, harassment or inciting violence. Commercial product promotions. Personal information such as e-mail, address or phone number. Web site addresses other than those on LegalHelpers.com.
February 18th, 2008 at 2:07 pm
I actually have a question, I filled CH. 13 in 1999, and included a student loan (