what happens to car title?

[bam531]

Couple of quick questions.... We are in a 5 year plan ( 1 year down 4 to go), our car should be paid off in 2 more years. What happens to that money when the car is paid off? I realize that it may go to other debts, but what happens to the title? Do we get it when the car is paid off or when we are done with our plan? Both our cars are through the plan and we will be lucky if hubby's car last that long. Attorney has never really explained that part to us. Payments are the same as we were making beore filing 13.

[justbroke]

Couple of quick questions.... We are in a 5 year plan ( 1 year down 4 to go), our car should be paid off in 2 more years. What happens to that money when the car is paid off?

This depends on how your plan was written. For all intents and purposes, your payment to the Trustee won't change.

I realize that it may go to other debts, but what happens to the title?

Your plan should have been written with a Provision as such...

Secured creditors shall retain their liens until their claims are paid in full. Upon payment of the secured creditor’s claim in full and upon either entry of the discharge or further applications in this Court by the debtor, the creditor shall record a satisfaction of lien and turnover title to the debtor.

Some Districts automatically include this language in a confirmed Plan. it basically means that the lien is subject to nonbankruptcy law. That is, when you actually pay off the car, they have to send the Title to you within so many weeks. You will get the title to the vehicle.

[helpless]

I was just discharged and just emailed the trustee. We paid off our van over two years ago and still don't have the title. I am not sure if the trustee has it or if I need to call the bank. I really don't want to call the bank!!

[AngelinaCatHub]

I was just discharged and just emailed the trustee. We paid off our van over two years ago and still don't have the title. I am not sure if the trustee has it or if I need to call the bank. I really don't want to call the bank!!

You may go to your tag office and have them pull your title info up. See if the lien has been removed. If it has for a couple bucks ask for a lost title replacement. Have your registration with you. 'Hub