Have title to my trailer, but owe bank?

[dogbone33]

I have the title to my utility trailer... I owe like 17k on it. I was suppose to give the title to the bank when the trailer got here but I never did. Does that mean it could be an unsecured debt now since I have the title? I am/was going to reaffirm it. I asked my lawyer thinking she would have some trick up her sleeve.... So I thought maybe some of you would know.

[JoeBankrupt33]

I've read that an unperfected lien (which is what this sounds like) would be unsecured in a bankruptcy and the creditor may not have any right to the property. Also, since you will have a 17,000 utility trailor (for which you owe nothing), it can now be considered an asset of the estate and the trustee can take it unless you have exempted it.

So, your lawyer didn't have any advice?

[justbroke]

As Joe wrote, unrecorded liens mean nothing in Bankruptcy.

If the title was recorded with a lienholder, then your mere possession of it does not mean that you "have title". Your state may maintain a lien in their system and that lien won't be released without a release of lien (application) and proof that the lien was satisfied.

Read the title and see if there is something in the Lienholder section of it. If so, then there is a lien recorded.

I'm having some title issues myself.

[dogbone33]

Lawyer hasn't gotten back to me yet. There is absolutely nothing in the lien holder section of my title.

[OhioFiler]

Sell the trailer.

[dogbone33]

Sell the trailer.

I can't! I work out of it and I would be out of a job! And I called the dmv and they said it's just a certificate of origin and since it isn't over 4000 lbs this is just for when I sell it and so on. But I think I was suppose to give this to the bank. Also, I am wondering if this is the reason they are dragging their feet on getting back to my attorney about reaffirming it for a lower price.... We will be discharged in a month. I have been making the payments... I am in OH by the way...

[OhioFiler]

I can't! I work out of it and I would be out of a job! And I called the dmv and they said it's just a certificate of origin and since it isn't over 4000 lbs this is just for when I sell it and so on. But I think I was suppose to give this to the bank. Also, I am wondering if this is the reason they are dragging their feet on getting back to my attorney about reaffirming it for a lower price.... We will be discharged in a month. I have been making the payments... I am in OH by the way...

I would not worry about it. There is no real "title" for a trailer in Ohio under 4,000 lbs. I don't see how the lender could attach a lien to it or repossess it after you are discharged. I would not reaffirm the loan on the trailer.

[dogbone33]

I would not worry about it. There is no real "title" for a trailer in Ohio under 4,000 lbs. I don't see how the lender could attach a lien to it or repossess it after you are discharged. I would not reaffirm the loan on the trailer.

I was just wondering if it is considered an unsecured debt? So I won't have to pay that loan back? That would be nice if I own it out right and don't have to make any more payments.... How lucky could I be? Probably not that lucky! LOL.... But maybe my lawyer can figure something out. She offered them 8500 for it... We shall see...