Can they still take our car if we filed for bankruptcy? 15 Answers as of January 10, 2014

I have a title loan on my car. We filed chapter 7. We have not made a payment since July on the title loan. My bankruptcy is due to discharge around January 6. We have offered to surrender the car and they have not responded. What happens can they still take the car?

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David R. Fondren, Attorney at Law
David R. Fondren, Attorney at Law | David R. Fondren
They are entitled to get their collateral. They will wait until after the discharge and repo the car some night. Keep ALL of your personal property out of it. I would keep as little gas as possible in it as well. Be ready to replace it.
Answer Applies to: Missouri
Replied: 1/10/2014
Paul Stuber, Attorney at Law
Paul Stuber, Attorney at Law | Paul Stuber
Yes the discharge does not change the secured interest in the property just their ability to collect from you but not the collateral.
Answer Applies to: Colorado
Replied: 12/30/2013
OlsenDaines, PC
OlsenDaines, PC | Kristoffer Sperry
A lender with a title loan retains the right to repossess a vehicle at any time if they are not receiving payment after the bankruptcy closes. In some cases the hassle of repo and auction are not worth the time for a lender to pickup the vehicle. Stay in contact with the lender after the bankruptcy and see if you can arrange its pickup, if not you can keep it insured and drive indefinitely but you may never see the title. You may want to speak to your attorney about redemption.
Answer Applies to: Idaho
Replied: 12/30/2013
Garner Law Office
Garner Law Office | Daniel Garner
Since you have offered to surrender the car, you should contact the lender to make arrangements to return it. The sooner you get it off your hands, the sooner you can drop insurance on it. Until you surrender it, you remain responsible for anything that happens to the car.
Answer Applies to: Oregon
Replied: 12/30/2013
Idaho Bankruptcy Law | Paul Ross
Assuming this is a properly secured loan, yes, they can repossess the vehicle after the stay regarding them expires. Bankruptcy will remove your personal liability on a debt, but does not remove the lien in the property. They can still execute on that lien.
Answer Applies to: Idaho
Replied: 12/30/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, they can take the car. See a lawyer about a chapter 13 if you want to keep it. If you want to surrender it, you can keep driving it until the do. Remove all personal property from it as getting your things back can be a real pain.
    Answer Applies to: California
    Replied: 12/30/2013
    Elkington Law
    Elkington Law | Sally Elkington
    They can take your car if you Fe behind in the payments. Contact the lender and request that they pick it up. If they don't, or say they aren't going to, keep it insured and drive it.
    Answer Applies to: California
    Replied: 12/30/2013
    Robert S. Payne, Utah Bankruptcy Attorney
    Robert S. Payne, Utah Bankruptcy Attorney | Robert S. Payne
    Yes, if they have a security interest in the car and if you have not made payments, they can still repossess the vehicle. Bankruptcy discharges your personal liability for the loan, so they cannot sue you personally, but they have every right to collect their collateral.
    Answer Applies to: Utah
    Replied: 12/30/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    When people ask me if "they" can take something, I have to wonder who you mean when you say "they." The creditor holding a title loan owns the car you are driving. After the bankruptcy is over, the owner of this vehicle can take it from you unless you reach an agreement to pay for it.
    Answer Applies to: Nevada
    Replied: 12/30/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Liens survive the bankruptcy discharge and they can repossess the car if the loan is not paid.
    Answer Applies to: New York
    Replied: 12/30/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Yes, they can repossess the car once your discharge order is entered. If you don't want to be stranded you should consider making arrangements to voluntarily surrender the car.
    Answer Applies to: Colorado
    Replied: 12/30/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If title is in their name then they can take the car back. Even if they don't take it, you can not sell it as the title will not be in your name so it may be better to give back to them.
    Answer Applies to: New York
    Replied: 12/30/2013
    Law Office of Shawn N. Wright | Shawn N. Wright
    It could be that the title loan company isn't interested in your car. It all depends on the year and make of your car and what they think they can eventually sell it for. You should speak with your attorney to negotiate a possible settlement amount with them. Otherwise, you will have a junker sitting at your curb and you won't be able to take it to a junkyard (without the title). On the other hand, once the discharge is granted, then the title loan company can come out and take the car without getting Bankruptcy Court approval.
    Answer Applies to: Pennsylvania
    Replied: 12/30/2013
    Law Office of Mark B. French
    Law Office of Mark B. French | Mark B. French
    When you took out the title loan you granted the lender a lien on your vehicle to secure the repayment of the loan. Since you have not made the payments you agreed to make on the loan, yes the lender has the right to repossess the vehicle. Prior to your discharge the "automatic stay" prevents the lender from repossessing the vehicle without court permission. After your discharge is entered the lender can pick the vehicle up. If your vehicle is not worth very much then the lender might decide that picking it up is not worth the trouble. In that case you could continue to use the vehicle but you will not have a "clear" title, meaning you can't sell or transfer the vehicle to anyone else.
    Answer Applies to: Texas
    Replied: 12/30/2013
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Yes they can take the car still.
    Answer Applies to: Florida
    Replied: 12/30/2013
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