I'm in Chapter 13 bankruptcy until May 2011. I have paid off my car under bankruptcy but loan company has refused to give me my title until bankruptcy is discharged. Can they do this?
Loan company says it is company policy that they do not release title until bankruptcy is discharged. My lawyer says there is nothing that he can do.Loan company checked and saw that the loan was paid off but still refuses to give me title. I don't owe this loan company anything else. I wrote in September asking for an explanation and still no reply.
Chapter 13 Bankruptcy Attorney
The short answer is "no". The long answer can't be given because there's too much that's unclear; Why are they refusing to transfer title? Are they aware you are in Bankruptcy? What do they tell you when you ask them to transfer title? Have you or your attorney written them demanding they release title?
You may have what is known as a Stay Violation for their refusal to transfer title under 11 U.S.C. 362, if they expect any further money from you before they'll transfer title, you need to see a local attorney. Go to the www.nacba.org and find a local NACBA member.