They aren't the lienholder. I bought a car from a small dealership. The price of the car itself was $2,770.00. With all of the taxes, registration fees etc. the total came to $3,200.00. I told the dealer that I only had $2,800.00 to purchase the car in cash. He told me that I could purchase the car with the cash I had and then bring the remaining $400.00 to him in a month when I picked up the plates from him. He had me sign the title and gave me a receipt of sale which showed the price of the car, the taxes and fees, the total and that the total was paid and there was a $0 balance owing. He wrote me a separate hand written receipt showing what I had paid in cash and that I still owed him $400.
I am currently in possession of the vehicle, have insured it and have now filed a chapter 7 bankruptcy (due to a divorce not this situation). It has not quite been a month since I purchased the car so I still have not paid him the remaining $400 and have listed him as one of my creditors in my bankruptcy. The problem is that he said the title would be sent to me in the mail and I have not received it. Also, I am supposed to pick up my plates from him still. He says that I have to pay him the $400 or he will not give me the plates or title.
Can he hold these from me? I did not sign anything stating that he was the lienholder on this car. It was only a verbal agreement and a hand written receipt that I still owed him $400. Can you please advise me? Do I have to pay him the $400 in order to keep my car? If I don't, does he have to provide me with the title and plates?