Legal Question in Bankruptcy in Missouri

I have a loan/lien on my truck and trailer. The loan company has the trailer title, but I have the truck title. I was required to carry enough insurance to cover both truck and trailer, but when I licensed the truck, the title was sent to me. Does this mean the lien is only against the trailer and if so, can I sell the truck? I am considering bankruptcy because I lost my job and currently work for less than half of what I was previously earning.


Asked on 1/13/10, 2:26 pm

1 Answer from Attorneys
Alicia Beeler Villines Alicia Beeler Villines (sole practitioner)

The fact that the loan company sent you the title does not necessarily mean they no longer have a lien against it. If the loan company is legally entitled to repossess the truck if you stop making payments, then they still have a lien.

Generally, the three options for secured loans in bankruptcy are to surrender the property in lieu of continuing to pay (any deficiency owed is treated as any other unsecured debt), reaffirm the debt (you keep making the full payment and keep the property) and last, redeem the property (pay the current fair market value and keep the property). The third option isn't available for motor vehicles purchased within 910 days (about 2 1/2 years) of the date of filing.

Read more
Answered on 1/18/10, 5:54 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Missouri