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  1. #1
    Join Date
    Apr 2018

    Default Unperfected Vehicle Liens in Bankruptcy

    My question involves bankruptcy in the state of: North Carolina.

    I am filing bankruptcy for credit cards and personal loans. I also have two vehicles that I have active loans on and a mortgage. Initially, I was going to file a 7 and keep paying on my car loans and home, signing reaffirmations on the vehicles. However, I just found out that the credit union that gave me the loan last year on my new vehicle which I still owe about $35,000, never got a lien on the title. They are currently trying to get me to sign paperwork so they can get a lien on the title. I could sign and stick with the 7, or I can use the vehicle as an asset to file a 13.

    I read there is a way they can get a lien on the title without me signing though. Filing a 13 will save me an additional 10k and all my debt will be covered in 3 years instead of 5. Current monthly payments wouldn't be much different with a 7 or 13 for the next 3 years. The 7 would be the quicker option. It is a priority that I keep my vehicles and home. I'm concerned that the 13 might backfire. The credit union should have a lien on the title and I'm just not sure if I should try to take advantage of them not having one for whatever reason. Thanks for all of your help.

  2. #2
    Join Date
    Mar 2013

    Default Re: Interesting Issue: 7 or 13

    I suggest you carefully read your loan contract. Recording the lien on the title may be a contractual obligation and if you don't cooperate you could be in default and end up with the car repossessed.

    Talk to a bankruptcy lawyer about filing 7 or 13.

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