I have a car and I still make payment. After I file Ch-7 and get discharged I want to sell the car and pay off the loan. I may have some cash left over after pay off the loan. I just wonder if I can do that.
Divorce / Separation Lawyer
Gary's answer may be incorrect.
If your case was discharged AND closed, Gary is right.
However, some Chapter 7's remain open after discharge, and if that is the case the answer is no (until the case is also closed).
I'd have to read the case docket to know if the case was closed or open after discharge.
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I don't see any problem with what you describe. If the loan is discharged, it is likely the bank is going to foreclose its lien against the vehicle anyway so if you sell it you can pay off the lien but you would not obtain clear title for the buyer until the bank release the lien on the title.
Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.
Yes, there is nothing in the Bankruptcy Code that prohibits you from selling your vehicle after your Chapter 7 discharge. If you have not filed yet, do be sure to disclose ALL assets to the bankruptcy court when you do.