I live in Arizona and need to file Chapter 7
bankruptcy. I am recently divorced and have an S-Corp that has not done well over the past few years due to the economy.
I own one vehicle, a nice 2004 Ford truck that is in my name personally, but the expenses and payments are made by the Corp. I owe $7000 to Capital One Auto Finance and it Kelly Blue Books for $16,200 to sell privately. I am 60 days behind on my payments. Capital One is offering me a restructure that would reduce my payments and also move my past due payments to the end of the loan. However they claim that the title is not correct and that they are not shown as a the lien holder. I called a local title service and they looked it up and they confirmed there was not a lien holder listed on the title. I went to my title and confirmed the same.
Based on the above, here are my questions and scenarios in positioning myself for bankruptcy in regards XXXXX XXXXX only vehicle:
1) Will I lose my vehicle in bankruptcy?
2) If my vehicle is protected when I file, would it be best to let Capital One be named on the title as Lien Holder, or should I not send them the documents to correct the title and list their $7000 on my bankruptcy and not have any more payments on my truck when bankruptcy is complete?
After receiving the answer related to my truck, I will followup with a question about my S-Corp