Ch 7 w/ a vehicle title loan question...

[davedude]

A close friend of mine as asked me to help him file Ch 7 on his own pro se.

He has a fairly straightforward case from what I can tell thus far however they have a title loan on a vehicle they "own."

Of course because this is their only car they want to keep it... How does that work if they got a sleezy loan through a cash time title loan and they want to discharge the debt in BK but keep the car?

[justbroke]

Of course because this is their only car they want to keep it... How does that work if they got a sleezy loan through a cash time title loan and they want to discharge the debt in BK but keep the car?

I wouldn't call them sleezy if you (your friend) actually used them. They must have provided a needed service at the time.

That aside, if this is a true title loan, then your friend surrendered the title. The title loan company either recorded a lien and/or have a "possessory" lien. Whether or not this title is actually property perfected, will determine whether is is a secured or unsecured loan.

If it's an unsecured loan, it will be discharged. However, if the car has too much value, your friend may have trouble exempting it. Since this may turn into an asset case, your friend may actually lose the car. A very good reason not to file pro se.