HELP....Collateral loan filing bk

[ncimfabulous]

Here's my problem i'm about to file bankrupcy on my own which I know is a feat in itself but I can't afford a lawyer. So I have a collateral loan with two cars attached. I tried to cancel the loan less than 30 days later but was told it was impossible since the funds were already disbursed (I was not sent a check but the loan paid off two bank issued credit cards). I did not sign any loan papers before of after the loan.

Question: During bankrupcy proceedings do I have any legal obligation to release my cars to the bank? Can I take any legal recourse regarding the collateral during my meeting with the trustee?

[justbroke]

Question: During bankrupcy proceedings do I have any legal obligation to release my cars to the bank? Can I take any legal recourse regarding the collateral during my meeting with the trustee?

• First rule of Bankruptcy, liens survive Bankruptcy.
• Rule #2, when in doubt, see Rule #1

If you used your cars as collateral, and the lender recorded the lien within 30 days of your loan being closed, then they hold a valid and enforceable lien as against those cars.

The two things which will get rid of a valid, enforceable lien are, payment of the underlying note in full (or otherwise settling the debt), or an order by a court voiding the lien.

You can forget about voiding the lien, unless it was improperly recorded.

Otherwise, you will need to deal with this lien on those cars in the Bankruptcy.

If there is equity in those cars, and you don't property exempt the equity, the Trustee may decide to sell them.

Do you have the NoLo book?