Legal Question in Credit and Debt Law in Texas

Can Credit Union Keep Car Title?

At the point where there were a few remaining payments on my car loan through a credit union, due to unemployment (11 months earlier): 1) I filed for Ch. 7 bankruptcy (pre 10-17-05); 2) I had two other debts through the same Credit Union (a personal loan and a credit card issued through it). The Ch. 7 bankruptcy included the 2 credit union debts except the car loan which I subsequently paid completely. The Ch. 7 bankrputcy was eventually discharged along with the 2 credit union debts. I have all along been paying the monthly minimum amounts (over 1 yr since filing for Ch.7; 6mos. since discharge) that the Credit Union determined that I need to pay on these 2 debts (for fear the car can be repoed or other legal maneuver). The Credit U. will not give me the car title because it asserts that the car is a collateral to the two other debts (per the standard fine print in the said debts' paperwork that I signed).

Since the car is paid off and the 2 other debts are discharged, can I get the car title without having to pay off the 2 discharged debts (as the C.U. would want?)


Asked on 2/26/07, 7:53 pm

1 Answer from Attorneys
James Grissom Law Office of James P. Grissom

Re: Can Credit Union Keep Car Title?

Do I understand this correctly? You were making payments on ch. 7 discharged debt to the CU out of the ggodness of your heart? You revived the debt that you got discharged in bankruptcy, thus reviving the CU's collateral rights. See what happens when you try to be nice to the bank.

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Answered on 2/26/07, 10:12 pm


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