CA DMV Question - secured car loan

[KMC4]

Hello,

I asked this question in a previous thread under a different subject but thought I may have a better chance of getting a response by creating a new thread.

I've sold a truck to an individual that was collateral secured by a credit union months ago. The person didn't know there was a lien against the truck. If the loan gets discharged in bankruptcy, what happens to the title of the car? We are still the registered owners of the car but the credit union is the legal owner. Will we always be tied to the truck as the registered owners having to pay the annual registration fees? Is there any way out of this if the loan gets discharged?

My main concern is that someone else is driving the truck around but we are still the registered owners.

Any help is greatly appreciated.

PS - The loan was only for $3500 and only $2700 is owed now.

[Cali]

I don't know the answer.

But I am curious to why would you sell the vehicle and not tell the person you were selling it to that there was a lien on it?

[HHM]

Well, what is done is done.

But you may have created quite a mess to clean up that is going to take some leg work and head aches.

In BK, your personal liability on the secured note is discharged, but the lien survivies. So the question is, how do you go about getting the lien released, or otherwise dealing with the issue to get the car out of your name. Honestly, I don't have an answer for you.

Also, I think you mentioned in the other thread that you have no proof of sale. (did the buyer pay cash or write a check?).

[KMC4]

The buyer paid cash for the vehicle and we did not get a receipt. We have no way of tracking this person down.

Thanks for the response.