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.
2 lawyers agree
Chapter 13 Bankruptcy Attorney
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?
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