Overhaulin'

What happends to a car title loan if you file bankruptcy?

Would I still have to pay the title loan company? Could I keep my car?

Public Comments

1. Yes - you can keep the car - you can determine if you want to keep the car - then you re-affirm the debt (and then you will have to pay off the remaining balance through regular payments) make sure you really want this car - because once you file bankruptcy - you can't file again for (I think) at least 7-10 years so you want to know you can afford to make the car payments through the duration of the loan - otherwise if you fail to make those payments later- you'll still lose the car.
2. If you file chapter 7 on the vehicle loan, they will repo the car, and you will be done with that loan. I believe you can also surrender the vehicle in a chapter 13. Either way you will lose the car if you disolve the loan. Good luck
3. No you can not keep the car,that will be taken by the bankruptcy people and sold on to pay your most important debts first (ie) customs,tax people and any government body they always get there money first ,the rest can wait
4. Tom and Tommy B are so WRONG.. I just filed chptr 7 and I get to keep my car and I will just continue paying off the rest of the loan... It was no problem to do that and my loan is thru Wells Fargo Auto... No finance company wants that car back, especially if its under $2,500... or even if loan is higher you can still keep your car but in my case I am continuing to pay for it.
5. From my understanding these are your only options. Since the title loan is a secured loan then you have two choices. First, reaffirm on the debt (that means pay it back) or second, give them your car (which is the security of the loan). Also, a good site is... http://www.surveyland.org/jump.php?link=auto Take Care.