Title for car being held by credit union, filing bk chapter 13... What now?

[noey]

I have finally paid off my car loan. Yes! but NO! I have not received my title in the mail.

I called the credit union today to ask about this. I was told because I was behind in my loans, I need to bring them up to date before I get my title? I was also told they they cross collateral everything. If that is the case.. how can they release my title if I pay them the $780+ dollars I am behind?

If I file a chapter 13.. will I keep the car and get my title as I should??

[lrprn]

Noey, help me understand. You say first that you've paid off your car loan, but then you say you owe the credit union $780+. Are you behind on another loan or loans to the credit union and that's the $780+ they want before they will give you your car title?

You haven't shared much about your overall financial situation. However, knowing just what you told us, given the chance to pay up on $780+ or (if you even qualify) filing a Ch 13 and then paying your trustee for three to five long years what could end up being more than $780 every single month....what's the best option of the two? It's no contest. Pay off the $780+, get your car title, and forget filing a 13 just to get that car title.

Now if you are carrying a *lot* of debt and can't find the way to pay off all your debt in the next five years or so no matter what you do, then that is the time to talk seriously about filing bankruptcy.

Understand that with a paid-off car, that car could be an issue if you live in a state that doesn't have a generous auto exemption and you decide to file bankruptcy, whether you have the title or not.

[noey]

I am so new here it's crazy. I will be as clear as possible. About 2 years ago. I connected with a debt settlement company. It was too good to be true. My situation was I had a pretty good credit score, but was very set back by my monthly payments on multiple credit cards. My DS company swore they could help. What did they do? Nothing. They took 400 a month, put it in an escrow account, paid themselves first and then a year and half later.. none of my creditors were paid off. no settlement. My credit is ruined. I tried to work with the creditors myself. I really did. The only loans I kept current were my CU, car loan, personal loan an CC. My situation with the unpaid creditors is not good. I tried to settle myself. I managed to pay one of the 5 off. ( which was great, they made good on their agreement ) One took my payment and told me it was a settled account. Now, six months later I get a call from a collection agency, asking for the rest 'of the amount owed!" I just found out they are not honoring my agreement as " I paid by a personal check" and not allowed a direct withdrawl of said monies.. I was lied too and I have decided that despite my best efforts I need to declare bankruptcy as I just can not make the payments back to the creditors. ( sears for example have an attorney taking 100 a month for 3 years to pay them off, just one of my creditors who would NOT settle on a lower rate"

Saying that I have met with an atty. CHapter 13 is what is going to happen for me. I was told to stop paying my creditors as this will be taken care of in my BK. I paid off my car loan with the last payment a month ago. Saying that, the CU is telling me they are holding my title because I have defaulted in my cc and my personal loan. ( they have a cross collateral claus ) that I didn't know about.

I want to keep my SUV. Not because I struggled to pay it off, but because my goal..is not to have to buy another car, used, new or otherwise.. I am asking if a chapter 13 will help me keep my vehicle.. I understand the debts will be paid back.. but in the legal smeegal stuff of it all, will they release the title to the truck finally, or will they fight to keep something I paid off, on time every month for 5 years??

[mtngirl47]

The credit union will keep the title until all loans you have with them are paid off. But you will be able to keep the vehicle, keep insurance and tags on it, drive it and repair it. It will be considered an asset that is under the control of your trustee--even if you had the title you wouldn't be able to sell it or get a loan against it without the approval of the trustee. I have a similar situation...truck paid off about a month before bk, but credit card was behind and so now the title stays in their hands. I whined and complained to my lawyer, but as he pointed out, "What do you need the title for?"

As for your question about being able to keep your vehicle in the Chap 13--talk to your attorney...I was able to keep 3 vehicles (one pretty old). Good luck!