I have found out that banks must apply for a repo title if the debtor decides to surrender the vehicle BEFORE filing for BK. However, what if i surrendered my vehicle at the time my debts are discharged 60 days after filing BK, will my bank still have to apply for a repo title under this scenario?
More than likely, as the bankruptcy does not generally affect the title, which is issued by the state. The bankruptcy deals with the debt, not the lien rights of the lender in the collateral. Some liens can be avoided in a bankruptcy, but not a voluntary lien based on a car loan. You should talk to a local bankruptcy attorney if you are concerned about this.
If your state requires that the title to a vehicle be branded as a repo the fact that you filed a bankruptcy and surrendered the vehicle through your bankruptcy will make no difference whatsoever. Besides, it will no longer be your vehicle so what difference to you will it make?
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).