Hi - my name is XXXXX XXXXX X'X a Bankruptcy and Consumer Protection attorney here to assist you.
A Bankruptcy can discharge one's obligation to pay a vehicle loan, but cannot remove a lien from from the vehicle. Legally, you can sell a vehicle with a lien on the title, but no one is going to allow a trade in of or purchase a vehicle with a lien if the balance of the loan is more than the value of the vehicle.
This does not make any sense. One is entiled to keep one vehicle in bankrupcy. This was not a auto loan. The truck was paid for, yet it and several other things were held as collateral. So now I a releived of my obligation to pay the loan, yet the lein can not be removed? And do we live in daily question as to wheither or not they can come and repo the truck?
This does not sound correct. How do we go about getting the lien holder off the title?
Sorry! I did not realize the lien was not based on a loan for the vehicle.
However, the same rule applies to any collateral that was pledged for any loan, even it the loan was for medical bills.
Pledging the truck as security for the loan made the loan secured instead of unsecured. This means the lender does not have to remove the lien unless the loan is paid - even though the obligation to pay that loan was discharged in your Bankruptcy.
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