Issues with car titles down the road?

[julsmom]

We are in the process for preparing for a CH 13, we are moving our main bank account & payroll checks from our CUnion to another bank since we owe them money that will go in with the BK...one of the reaffirms, will be one of the cars, the atty mentioned that we can reaffirm & keep the car, it is a good car, low miles, good payment & we want to keep it. BUT since we would include CC & line of credit debt in with the BK, due to cross collaterization (SP?) we may have issues after we pay off his car, they may withhold the title...what the heck? Can they do that?

[StartingOver08]

I had the CU write in the reaffirmation agreement that they would send me the title within 10 days of payoff. I paid off my reaffirmed vehicle Nov 2009 and received the title right away. No issues at all.

[debtinohio]

Yes - it's possible. You can see if you can get it written up from them ahead of time to give you the title at payoff. The other solution? Just keep it till it's not worth anything. Just don't plan on ever being able to sell it.

Let it rot in the yard after it stops running and eventually drop it off at your local CU branch.

[nsupanda]

Let it rot in the yard after it stops running and eventually drop it off at your local CU branch.

Good idea! It may not be good for trade-in value, but you could let your kids use it for a fort. LOL

I'm in a similar situation. I just bought a new-to-me car back in December. It is the BEST car I've ever owned and I'm fixing to file Ch. 13. I just pray I can afford to keep it... we'll see! I'm sure I'll be able to, but now that I know I could have trouble with the title later on kinda makes me wonder if my new car will be rusting in my yard 20 years from now?

[debtinohio]

Mine's a 2009, bought it brand new a few months ago. I financed it with a local credit union who offered to also transfer 20K of debt to a new credit card for zero fee and give me a $300 bonus for doing it, so I did this also. Fast foward a few months and I am keeping the car and the card is included in my C13 plan. I have no idea what will happen yet. But I plan on keeping the car forever if they hold title.

[nsupanda]

I thought about it some more and I just don't understand how they can hold the title if you pay the card off? Even though it's included in the bankruptcy, its a secured loan so wouldn't they pay the balance off??? Therefore, if the balance is paid off why can't the lein be released? Am I just not getting something here?

[debtinohio]

I thought about it some more and I just don't understand how they can hold the title if you pay the card off? Even though it's included in the bankruptcy, its a secured loan so wouldn't they pay the balance off??? Therefore, if the balance is paid off why can't the lein be released? Am I just not getting something here?

It's the cross-collateralization and since the car is now secured by all loans/cards you have they can require that all be paid in full before releasing title.

[nsupanda]

It's the cross-collateralization and since the car is now secured by all loans/cards you have they can require that all be paid in full before releasing title.

So, after my bankruptcy is over and done with (chapter 13) they can hold the title forever?

[debtinohio]

So, after my bankruptcy is over and done with (chapter 13) they can hold the title forever?

It's possible, best to check with your attorney.

Mines a 2009 with lifetime powertrain warranty, I'll see how long I could keep it :-)