Auto lein and credit card

by Jeannie
(Metter, GA )

We have a credit card and car loan through our bank. We owe $5000 on the credit card. We paid the car off, but they never sent us the title. They are now threatening that they will not send us the title until the credit card is paid off. We are filing bankruptcy soon. Can they take the car? Can they take the car if we file bankruptcy? Can they withhold the title because of the credit card?

Comments for Auto lein and credit card

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Oct 16, 2011
 Auto lein and credit card
by: Debtcollectionanswers.com

Sorry about your financial problems. I recommend that you ask your bankruptcy attorney all of the questions you have asked us because your situation is a bit complicated given that your car loan is with the same bank that issued you the credit card. He/she will be able explain your rights to you and what the bank can and cannot do.

If you are not already working with a consumer bankruptcy attorney, I recommend that you consult with one ASAP. Bankruptcy is a very complex process and it's unlikely that you will realize all of the benefits of filing without an attorney's help. Also, given the complexities of the law and all of the detailed paperwork you must fill out to initiate a bankruptcy, you are liable to make mistakes that could affect how much debt you are able to get rid of and how many of your assets you can keep if you try to handle your own bankruptcy.

At an initial meeting with the attorney, he/she will explain your rights, tell you what to do and not do prior to filing, and help you figure out which kind of bankruptcy you should file -- a Chapter 7 or a Chapter 13. Go here to schedule a free consultation with a bankruptcy attorney
Oct 19, 2011
 Pentagon
by: Anonymous

I have the same problem as I paid my car and they won t send me the title as there s a balance pending on my credit card. I don t think it s legal as your car doesn't have any lein when you first bought it...but if anyone has any idea pls post.

Reply from DebtCollectionAnswers.com:

Actually it may be legal if there is a cross collateralization clause in the contract you signed with the lender. We recommend you pull out your loan paperwork and check, and also follow our advice and talk with a bankruptcy attorney to learn what your options may be.

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