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Will I get my car title back after filing a title loan under chapter 13?

Memphis, TN |

I had a past due title loan of which I am planning on putting under chapter 13. Do I have to wait until the 5 years are finished under bankruptcy before I get my title back?

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Attorney answers 3


The title loan will be filed under the secured creditors. If you complete the payment plan the court approves, you should receive your title upon completion of the plan.

I am not your attorney, I do not represent you. This response is submitted for informational purposes only. This is not legal advice, nor is it intended to be taken as such. Anyone considering the above referenced situation should always consult an attorney within the jurisdiction before taking any action based on this, or any other information.


In most Chapter 13 bankruptcy cases, the debtor files a plan that proposes to make payments based on the value of the car which is less than the total balance of the loan owed as of the date of filing the Chapter 13. The difference in the value to be repaid as a secured claim(based on the value of the car) and the loan balance is treated as an unsecured claim. All unsecured creditors are to be paid the same percentage The unsecured portion of the claim is paid whatever percentage (ie, 5% / 5 cents on the dollar) and the balance of whatever is left owing (the other 95%) is not wiped out until you receive a discharge.

You do not get a discharge in bankruptcy until you make your last payment. Therefore, until you make your last payment the plan has not been fulfilled, you do not get a discharge and the creditor does not have to release the certificate of title. However, many creditors go ahead and release the title to the debtor when they have been paid the secured portion of their claim through the bankruptcy.

If your loan is small enough that the entire claim is paid off long before you finish your bankruptcy, then the creditor would have to give you your title when the claim was paid off.

Translated into english, 'you will get your title back the earlier of the date when a) the creditor's claim is paid in full or b) the secured portion of the claim has been paid and the balance (unsecured portion) of the claim has been discharged by the entry of a discharge order which comes at the end of the plan.


Once the loan is paid off based on the plan, you should get the title back.

Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.

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