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Am I able to be rid of the Title Loan Lien to My vehicle in Bankruptcy

Wednesday, March 4th, 2020

Am I able to be rid of the Title Loan Lien to My vehicle in Bankruptcy

Bankruptcy expert Leon Bayer answers real-life questions.

It, redeem it“If you will redeem. However, if you shall not, tell me…”

A few years back we took away a name loan on my truck. I will be preparing on filing for bankruptcy but want to keep my vehicle for work – I will be a paint specialist.

My vehicle may be worth not as compared to the blue guide price because, even though it’s in great mechanical condition, it is covered with scrapes and paint splatters.

Could I redeem my truck in bankruptcy to eliminate the title loan?

Unfortunately, you won’t have the ability to redeem your truck in bankruptcy. However you have a moneykey login another choice for eliminating the lien — “avoiding” the lien. I’ll explain what redemption is and exactly why you can’t make use of it, and exactly what avoiding a lien is and just why this may do the job.

What’s Redemption in Bankruptcy?

So that you can redeem an automobile in bankruptcy, you pay the car title lender the market value associated with the automobile. In the event that loan provider rejects your redemption offer, you’ll file a motion asking the court to look for the present value or your car and give an order needing the lending company to just accept that amount of cash. (to find out more, see maintaining your automobile in Chapter 7 Bankruptcy Through Redemption.)

But there are two main catches that are big redemption law that you won’t like.

  • You’ll just redeem with a lump sum repayment payment; you can’t get it done installments.
  • It is possible to just redeem a product that is intended mainly for individual, household, or home use. a vehicle utilized mainly for work will not qualify.

Due to the catch that is second you can’t make use of redemption to eliminate the vehicle lien. But here’s the news that is good you’ve got another choice.

Preventing the Truck Title Lien

You might have the ability to “avoid” the lien held by the name loan lender. (more…)