Can I keep my car in a Chapter 7 if it has a title loan on it?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can I keep my car in a Chapter 7 if it has a title loan on it?

I purchased a used vehicle in full for $5800 about 6 months ago and got a title loan approximately 3 months ago when I fell on hard times. If I file Chapter 7, must I return the vehicle to the title loan lender? If I file Chapter 13, does the loan payment amount remain the same or is it loan balance spread over the 5 year term?

Asked on February 8, 2012 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

As long as you make the required payments on the Title Loan, you should be able to keep the vehicle in any Chapter of bankruptcy.  In a Chapter 7 you are technically required to enter into a reaffirmation agreement on the loan, but that is not always the optimal choice.  Your attorney can advise you further on that.

As for the Chapter 13 you should be able to spread out the payments on the loan over 5 years, although it may depend on the value of the vehicle and how old the loan is.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption