Car Paid Off - But No Title Until Discharge!

[zeezee]

My car was paid off a couple of months ago so I was expecting to get my title. I called Lexus Financial and they said they don't send them until discharge (for me that's 2014!) The lady said it's just in case something goes wrong with the case. Fact is, it shouldn't matter if something did go wrong with the case because they got all of their money!!! They were secured. This is such bull****!
(rant over)

[angel7821]

Was your car paid through the plan or did you make the payments yourself outside the plan?

[zeezee]

They were made through the plan. But I still don't think it should make a difference because they are paid off! It wasn't reduced or anything, they got the full amount owed to them and I'm in a 100% payback.

[despritfreya]

If the creditor was paid IN FULL (not some "cram down" amount) then you should be entitled to a lien release under State law. If you have an attorney you need to discuss it with him/her. If you do not have an attorney I suggest you talk to one. If this were a case I was handling I would be demanding the lien release if the contract had been paid in full. No lien release would prompt me to file for an Order to Show Cause. That would get the lender's attention and my fees paid.

Des.

[zeezee]

Thanks Des, I though about calling my lawyer but I figured it was a small cause. But the more I think about it, it is a stupid policy (that was what the lady at LF said "it was their policy"). They got their money, so I should have my title! I really just wanted it so I can cut my insurance down to just liability instead of full coverage. It will save me about $1500 a year!

[despritfreya]

On an additional note, all you have to do is look at 11 USC 1325(a)(5)(B) - The court shall confirm a Plan if. . . with respect to each allowed secured claim provided for by the plan. . . the plan provides that the holder of such claim retain the lien. . . until the earlier of the payment of the underlying debt determined under non bankruptcy law (your contract) or the discharge.

Chances are your Plan has boiler plate language that requires the release of the lien if the loan is paid in full under non bankruptcy law before the entry of the discharge.

Des.