Can title loans be included in bankruptcy?

A loan on a vehicle can be included in chapter 7 or chapter 13. You should be able to keep the car as long as you continue to make the payments. You want to be sure to list the title loan because it is very likely that the vehicle has no equity in it.

Chapter 13 would force a payment schedule on the holder of the title loan. You must list all your debts and claims. Title loans are treated as secured debts in bankruptcy. All of your debts are included in both Chapter 7 and 13 Bankruptcy.

The lender does have some security if the loan is not repaid, because they can repossess the vehicle and recover the collateral. The lien on the vehicle will still be there before, after, and during the bankruptcy.


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