Car registration loan

[Yumablood]

What is the name of your state? I have filed chapter 7. I am keeping my car. I have a car registration loan my attorney says to include it. Can this company take my car or stop me from getting the title after i pay off my car loan? If i stop making my payments? Their paperwork says they can put a lock on my tire to prevent me from driving it etc. Can they do that if i file bankruptcy?

 

[PayrollHRGuy]

Those are very good questions to ask your lawyer.

 

[Just Blue]

What is the name of your state? I have filed chapter 7. I am keeping my car. I have a car registration loan my attorney says to include it. Can this company take my car or stop me from getting the title after i pay off my car loan? If i stop making my payments? Their paperwork says they can put a lock on my tire to prevent me from driving it etc. Can they do that if i file bankruptcy?

Let me get this straight: You want to not pay the loan and keep the car?

 

[Yumablood]

Let me get this straight: You want to not pay the loan and keep the car?

No. I make my car payments every month. This is like a title loan but its a registration loan. Totally separate from my car payments. It is through one of those check cashing places.

 

[Just Blue]

No. I make my car payments every month. This is like a title loan but its a registration loan. Totally separate from my car payments. It is through one of those check cashing places.

Are you in AZ? You didn't list your state...I am just assuming based on the user name.

 

[FlyingRon]

First off, your attorney is tell you you the law. You are required to list ALL your debts in the bankruptcy.

A "registration" loan is an unsecured loan. (with a typically egregious interest rate of 120-240%). It does NOT give them any specific rights to take the car. They get in line with the other unsecured creditors. It's essentially the PAYDAY loan scam repackaged to make it appear to be more than it is.
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[Yumablood]

Are you in AZ? You didn't list your state...I am just assuming based on the user name.

Yes, in Arizona

 

[Yumablood]

First off, your attorney is tell you you the law. You are required to list ALL your debts in the bankruptcy.

A "registration" loan is an unsecured loan. (with a typically egregious interest rate of 120-240%). It does NOT give them any specific rights to take the car. They get in line with the other unsecured creditors. It's essentially the PAYDAY loan scam repackaged to make it appear to be more than it is.
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Yes. The interest rate is high. The only thing i was concerned about is in their contract it says if i dont make my payments that they will put a lock on my tire preventing me to drive it. Can they do that if i have them in my bankruptcy? I am on auto payments with them from my bank account still.

 

[Zigner]

Speak to your attorney.

 

[LdiJ]

Yes. The interest rate is high. The only thing i was concerned about is in their contract it says if i dont make my payments that they will put a lock on my tire preventing me to drive it. Can they do that if i have them in my bankruptcy? I am on auto payments with them from my bank account still.

Do speak to your attorney about it, but I am fairly certain that the answer will be that they cannot do that once you have filed bankruptcy.

 

[FlyingRon]

They are forbidden to do anything with regard to collecting the loan (to include immobilizing the vehicle), while the bankruptcy is active.
Frankly, despite what you signed with them, I'm fairly confident they can't boot your car.

 

[adjusterjack]

Yes. The interest rate is high. The only thing i was concerned about is in their contract it says if i dont make my payments that they will put a lock on my tire preventing me to drive it. Can they do that if i have them in my bankruptcy? I am on auto payments with them from my bank account still.

In Arizona it's called a title loan which is secured by a lien on the title. The borrower signs a loan contract just like any other car loan that probably gives the lender the right to repo the car if payments aren't made. The contract might even list bankruptcy as an act of default.

Once bankruptcy is filed with the court the automatic stay goes into effect and the lender is prohibited from taking any action while the bankruptcy is ongoing.

On the day you file your bankruptcy with the court, I suggest you immediately provide a copy of the filing and the automatic stay to the lender so they know not to do anything illegal.

Talk to your lawyer about whether to continue making payments. In bankruptcy you are not supposed to favor one creditor over others.

Again, talk to your lawyer so you don't make any mistakes.

 

[FlyingRon]

In Arizona it's called a title loan which is secured by a lien on the title.

No, it is not. A title loan is a distinct item from a registration loan. A registration loan is an unsecured personal loan.

 

[Yumablood]

In Arizona it's called a title loan which is secured by a lien on the title. The borrower signs a loan contract just like any other car loan that probably gives the lender the right to repo the car if payments aren't made. The contract might even list bankruptcy as an act of default.

Once bankruptcy is filed with the court the automatic stay goes into effect and the lender is prohibited from taking any action while the bankruptcy is ongoing.

On the day you file your bankruptcy with the court, I suggest you immediately provide a copy of the filing and the automatic stay to the lender so they know not to do anything illegal.

Talk to your lawyer about whether to continue making payments. In bankruptcy you are not supposed to favor one creditor over others.

Again, talk to your lawyer so you don't make any mistakes.

My attorney said to keep the automatic payments going until my case is filed. Then after that. Stop the auto payments at my bank. Close my bank account and open a new one.