If loans are discharged in bankruptcy, can a debtor still be held liable for paying them off?

My husband and I went through Chapter 7 about 2 years ago. Everything went through fine and our case was closed. We had 3 loans with a local credit union, a visa, and 2 car loans. We surrendered 1 car and the visa was dismissed in the bankruptcy. We recently paid off the final car loan and were waiting for the title; I called today because I had not received it. I was told that they would not release the title and that a lien was on the vehicle until the other 2 loans were paid in full. Can they do that? Both the loans they are referring to were dismissed in the bankruptcy.

Asked on April 7, 2014 under Bankruptcy Law, Idaho


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Under Federal Bankruptcy laws if an obligation is deemed discharged in a bankruptcy petition and there is an order of discharge, then the debtor is no longer obligated to pay off the debt. Based upon what you have written, you should get title to the car. I suggest that you consult with a bankruptcy attorney in your locality. One can be found on attorneypages.com.

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