If loans are discharged in bankruptcy, can a debtor still be held liable for paying them off?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If loans are discharged in bankruptcy, can a debtor still be held liable for paying them off?
My husband and I went through Chapter 7 about 2 years ago. Everything went through fine and our case was closed. We had 3 loans with a local credit union, a visa, and 2 car loans. We surrendered 1 car and the visa was dismissed in the bankruptcy. We recently paid off the final car loan and were waiting for the title; I called today because I had not received it. I was told that they would not release the title and that a lien was on the vehicle until the other 2 loans were paid in full. Can they do that? Both the loans they are referring to were dismissed in the bankruptcy.
Asked on April 7, 2014 under Bankruptcy Law, Idaho
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Under Federal Bankruptcy laws if an obligation is deemed discharged in a bankruptcy petition and there is an order of discharge, then the debtor is no longer obligated to pay off the debt. Based upon what you have written, you should get title to the car. I suggest that you consult with a bankruptcy attorney in your locality. One can be found on attorneypages.com.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.