Lien Perfection?

[crescentmoon]

I'm working on gathering all my paperwork in order to file, and since my state doesn't give me the title to my car until it is fully paid off, the paperwork I have from my attorney states that they must have "lien perfection" from the bank. Does anyone understand what this means, and what paperwork exactly I need to ask for from my bank?

I'm keeping the car (if that matters) and could probably pay it off (since we're no longer paying the credit cards). But, I think paying it off this close to filing would look bad, right?

Anyway, if anyone could give me an idea of what paperwork I need, that would be super!

KBB

[LuciluS]

I think it would be the loan papers you signed when you bought the vehicle or it could be your State's Vehicle Registration. Some states who on the registration who is the Lien Holder.

Luci

[bkmaggster]

Perfecting the lien means they registered with the DMV as the lien holder.

If they did not perfect the lien, your car loan becomes unsecured debt and they are out of luck. Wouldn't that be nice? Doubt that happened, though.

[frogger]

Be very, very careful to get your liens perfected. Without that, the liens means nothing. Simply unsecured debt.

[HHM]

The real risk with unperfected liens is if you might have non-exempt equity in the vehicle but for the lien. If the lender did not perfect their lien, the trustee can take the car (assuming there is non-exempt equity).

[crescentmoon]

I appreciate all the advice, but what exactly do I need to do to confirm that the lien is perfected?

I'm nearly positive that the lien holder (Chrysler Financial) is on the title, because that is the reason the state holds on to the title instead of returning it to me.

Do I need to get some sort of paperwork from Chrysler Financial?

[frogger]

I would advise for you to hire an attorney to verify it.

[falken]

I appreciate all the advice, but what exactly do I need to do to confirm that the lien is perfected?

I'm nearly positive that the lien holder (Chrysler Financial) is on the title, because that is the reason the state holds on to the title instead of returning it to me.

Do I need to get some sort of paperwork from Chrysler Financial?

I would start by calling the DMV and ask if they can print you out something showing the current valid liens on the vehicle, that would be the easiest and cheapest way to get the information you need. If they can't/won't, they should at least know how you can get that information.