Car title question

[NewDawn]

My mother and father-in-law need to file bankruptcy and have a strange question. They currently have a car that has been paid off for a couple of years. They bought it from another son and daughter-in-law. The only thing is the title still shows as having a lien on it, even though they paid off the loan. They currently have it registered and insured in their name.

Do they list the car as an asset even though the title currently shows them as owners but with their son and daughter-in-law still showing as lien holders?

[Pandora]

When mom and FIL purchased the car from the son - and paid the son directly, was he supposed to pay off the car note with that money and possibly didnt? To my knowledge, thats the only way a lien could still exist on it - is if the son didnt actually use the money to pay off the car note.

Or... is it possible that the clear title was sent to the son and he possibly got one of those auto title loans... ?? That would create a lien against the car.

ETA: wait - just re-read your post again - you're saying your mom and dad HAVE the title but the son and DIL have a lien against it?

[jlmaca]

My mother and father-in-law need to file bankruptcy and have a strange question. They currently have a car that has been paid off for a couple of years. They bought it from another son and daughter-in-law. The only thing is the title still shows as having a lien on it, even though they paid off the loan. They currently have it registered and insured in their name.

Do they list the car as an asset even though the title currently shows them as owners but with their son and daughter-in-law still showing as lien holders?

If the title is in their name, it is an asset and they need to list it. Just how current is the listed existing lien? I paid off a truck 3 years ago and Ford still showed up as a lien holder and I had to pay $30 to have them send me proof I paid off the loan. The son and daughter-in-law as listed lien holders can write a letter discharging the lien and the state should honor it.