Car loan paid Chapter 13

[grndmom53]

We are 3 1/2 years in our chapter 13, can't believe we are this far in !

Our cars are paid in the plan & one will be paid off in 3 months, one in 6 months. My question is who will get the pink slip when these are paid off? Does the finance company send it to us or the trustee?

Do they hold the title until our plan is paid off?

Thanks for your help!

[jcsawyer]

I will be watching this as we too are putting out suv in it and will be paid off in 2 years. I was wondering the same thing!

[SMinGA2]

It may depend. Were they being paid at the contract interest rate/balance - or did your plan lower the rate or cramdown the loans? If either of the latter, you probably won't get the title til after discharge. If you don't complete your plan, the lender can revert back to the original contract balance/rate.

[BNKRPTinNC]

Will let you know as I, also, will be paying off two loans at the end of this month. One is for a vehicle and the other an RV. The vehicle was being paid at a lesser rate but for a longer term as we had purchased it at the end of 2003, new. There was no cram down. The RV, however, was crammed down from around 12k to 8k. As per 13datacenter both have less than $50 owed on each. This November will be 4 years for us.

[Carter]

My car was payed off through the plan about 3 months ago. I have one more month till my chapt 13 ends. I called the car people and they said they don't send the title until discharge.

[Scott50]

My car was paid off two months into my plan.. Chrysler Financial sent the title to the Trustee.. Trustee's office called me to confirm my address and mailed my title later that week...

[grndmom53]

Thanks everyone, one car was paid at regular rate, the truck is being crammed down.. I guess we just have to wait to see what happens. Since we cant really get rid of our cars until after our plan ends, it doesnt really matter if we get them or not!

I will post an update in a few months!

[kiheimer]

my car loans were paid off in my plan. I got the titles right away;
way before my discharge. They were mailed directly to me.

[jherron]

We paid off both of our cars in our Chpt 13. Wells Fargo sent us the title, but GMAC is holding it until after discharge. I guess it really depends on who the finance company is.

[zeezee]

My car was paid off last year and Lexus Financial (Toyota) is holding the title until discharge...the interest rate was lowered.

[goon]

We are 3 1/2 years in our chapter 13, can't believe we are this far in !

Our cars are paid in the plan & one will be paid off in 3 months, one in 6 months. My question is who will get the pink slip when these are paid off? Does the finance company send it to us or the trustee?

Do they hold the title until our plan is paid off?

Thanks for your help!

I believe this varies by district, but I am pretty sure that here in AZ the bank will hold the title until discharge unless there is a court order releasing it to you (ie you got court permission to trade-in the current vehicle and get another one for some reason, and even in that case it is unlikely you would actually get the title in your hand it would be handled through an MVD power of attorney)

At the end of the day I believe that what this comes down to is that until the case is "closed" the trustee could decide that he didn't distribute something correctly and make the bank return some amount of money to him for redistribution... thou I would have to imagine that that is extremely unlikely to happen unless you had alot of secured creditors

[Mayo]

I totaled a car wreck 3 months before my 13 closed. I had to go to court to get approval to settle with the insurance company, then the check had to be mailed to the trustee so that could settle the claim with the finance company. The wreck was in October, my last payment was in December. I got the check from the trustee from my wreck along with my over payments in my 13 in January. So I know this isn't pertinent to your thread, but dealing with the trustee and finance companies takes time.

[jmac]

Here is a good one, i got separated from my wife 2 years ago and decided to file for ch13 shortly afterwards. Her car loan was in my name and somehow ended up being part of my payment plan. I told my lawyer that the car wasn't mine and my ex had it but the trustee was paying almost all my payments towards it, so she said it didn't matter my payment wasn't going to change so don't worry about it and leave things be. Well my ex was making payments on it also so now it is payed off according to the bank but after reading this it looks like i may not end up getting pink slip until discharge...My ex is going to be PISSED when i tell her this...she wants to sell it to get a new car. I still have 3 years to go.

[alli]

HUbby just paid off truck and ALLY formally GMAC sent him a letter saying it was paid but that he had an electronic title so he won't get a paper title without requesting it.