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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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I had a clear title for a vehicle that I still had an auto

Resolved Question:

I had a clear title for a vehicle that I still had an auto loan for.

The lien was not recorded on the title by the bank.

I sold the vehicle and have yet not paid back the auto loan.

If I find that I cannot repay the auto loan in full, what recourse does the bank have against me?

If I file for a chapter 7 bankruptcy, will that offer me any protection regarding an auto loan for a vehicle I no longer have?

I would be filing in Arizona.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 7 years ago.



The bank still has a note that would be in default, and could still sue you for the balance. If they were successful in getting a judgment, that judgment could be discharged in bankruptcy, unless the bank asserted fraud. It would be a stretch but the bank is going to want the car returned, and the bankruptcy court is going to order that the car be surrendered, when they find out that you sold it there could be a problem and they may either make you give the money to the bank or not discharge the judgment.


You should get a consult with a local bankruptcy attorney and see if this is going to e an issue should you decide to file..

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