Need a little help!

[MCortez]

I am filing for bK but I do not know how to classify my car loan. I want to keep my car because it is in good standing but I am not the purchaser only the co-purchaser.
Does anyone know how I would put this on the schedules? Do I list it on Schedule B as an asset and/or do I list on D as a liability?? I am very lost at this point.

[MCortez]

The car is not paid off yet, so we don't have a title-(am i supposed to have one?) My mother is the main buyer and I am the co buyer..

[BassBoy]

You should have a memorandom copy form the lender. Your attorney (if you're hiring one) will need a copy and you may need to bring a copy to your 341 Hearing.

If I understand you correctly, you are the co-borrower, then the car may not be titled to you so it's not an asset to you.

[MCortez]

Is it still considered one of my debts?

PS. I don't plan to hire an attorney. I am doing this pro se..
Thanks for your help.

[BassBoy]

If your name is on the loan, then you are responsible for that debt.....so.....yes, it is your debt.

I'll see if I can help you further......give me some time.....or if anyone else can offer advice, but I think you may have to do a release of borrower and if I remember correctly, that will require you to refinance the car and have your name only on the loan, and the title.

[MCortez]

Thanks Bass Boy--

[Minnymouth]

Who name is on the title will determine who'se asset and debt it is.....

[MCortez]

Hi Minnymouth.

I thought the title was only given if the car was paid off. Am I wrong?
My mother is the buyer and I am the co-buyer but I pay the note. I don't know whether to list it on Schedule B Personal Asset or on Schedule D Creditor holding secure claims- Any help will be deeply appreciated.

[BassBoy]

As I have said, you need the memorandom copy. It's usually white. This is only way the car could be registered in the first place. That is why it's important that you find this. If your name is not on the title, you can't list it, PERIOD.

Is your name also on the loan documents?

[MCortez]

Thank you for your help. I will look into it further.

[Minnymouth]

If your mom's name is on the title, she owns it...... If your paying her for it on the side then this you need to discuss with your attorney.

If you signed a note with your mom, then when you file bankruptcy she becomes responsible for the note as the title owner...

Check you paperwork and get back with us.

[SinkingFast]

Hi Minnymouth.

I thought the title was only given if the car was paid off. Am I wrong?
My mother is the buyer and I am the co-buyer but I pay the note. I don't know whether to list it on Schedule B Personal Asset or on Schedule D Creditor holding secure claims- Any help will be deeply appreciated.

There are States where the DMV/BMV holds the Title when there's a lien against the vehicle.

There are other States known as "Title Holder States" where the vehicle owner holds the Title regardless of any lien against the vehicle.

Evidently you live in a State where the DMV/BMV holds the Title until the lien is paid in full and released by the Lien Holder.

You could be a co-owner of the vehicle along with your Mom. Just depends on how the Title was written up.

If you are a co-owner, then half the asset, along with half the debt are yours.

If you were filing with an attny, the attny would want a copy of your original loan and purchase docs on file for the Court's reference. Be sure to try and scrounge those up and put with all your other docs. Just a CYA in case the issue gets questioned. You're prepared to address it with the appropriate papers.

[MCortez]

I called the loan company and they said, I as well as my mom are on the title, she faxed me over a copy. The lady said she will send me a reaffirmation agreement. So now that I know this I will list it on my schedule D. Does everyone agree. ?? Thanks to all who helped..

[MCortez]

Sinking Fast.

My car does not have a lien against it. It is actually in good standing. Never Late. I don't want to add this to the bankruptcy so I guess I will have to simply reaffirm it.

PS. I am in California. You are right DMV holds the title until the debt is paid.

I think I am going in the right direction. I would sure appreciate any other thoughts, comments or advice.

Sincerely.

[SinkingFast]

I didn't mean anything bad by saying lien, McC.

Lien/loan are sometimes used interchangeably.

From http://en.wikipedia.org/wiki/Lien

In U.S. law, lien is the broadest term for any sort of charge or encumbrance against an item of property that secures the payment of a debt or performance of some other obligation.

Liens can be consensual or non-consensual. Consensual liens are imposed by a contract between the creditor and the debtor. These liens include:

* mortgages;
* car loans;
* security interests;
* chattel mortgages;
* Property Improvements (Mechanics lien)


An auto loan is a voluntary, or as Wikpedia says, consensual lien. It's registered on your car Title until the loan is paid in full. Then the lien is released. Same as a mortgage on a house. When you sell your house and the mortgage is paid in full, the County usually issues a "Lien Release" for your Deed.