Are those car title loan businesses considered a secured loan?
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Only if they perfect their lien( typically state law is within 10 days of the loan). If they did not record their lien on the title by the time you file, then they are unsecured, and will have to return the title if they took it from you.
Good LuckDisclaimer: I am not an actor on TV, but I play a BK Paralegal in real life. Nothing I say should be construed as legal advice, or really anything but entertainment. Please seek out professional help. -
Originally posted by catalina2225 View PostIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.Comment
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Problem is this person needs a secured loan before filing and can't get one on his already paid for car. This would be included in the BK about six months down the roadComment
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I'm in a similar situation. I own a car outright and in my district / county, you cannot claim anything for the vehicle ownership or lease expense if you own the car without a lien. So, if I got a car title loan 3 months before I file, I would have a lien on the car, and I believe I would be able to claim one.
Things I am unsure about are if I am able to claim the full IRS value, or just the amount of my total payments in the next 60 months divided by 60. I am also unsure how re-affrimation would work, I assume I would just re-affirm the auto title loan like any other secured loan? Anbody have any experience with an auto title loan in bankruptcy for means test purposes?Comment
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In the Means Test if the car is 6 years old or more or has 80k miles, you can take a $200 ownership expense. You are also allowed to add that to your vehicle expense on schedule J. I have in the past, had clients borrow money from a friend or family member and that person has you sign a promissory note and files a lien against the vehicle. The amount you can claim in the means test is the claim amount divided by 60 (assuming the note is 60 months or less).
Good LuckDisclaimer: I am not an actor on TV, but I play a BK Paralegal in real life. Nothing I say should be construed as legal advice, or really anything but entertainment. Please seek out professional help.Comment
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Thanks BKParaleagal. I'm still a little confused on how the ownership allowance works. All the laywers I talk to either don't know or don't want to tell me in the initial consoltation. Is there some online resource I can look at that tells me what all the northern illinois particularities are with the means test? Specifically how the vehicle ownership expense works on the means test / schedule J?Comment
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