Legal Question in Bankruptcy in Wisconsin

Surender of Secured Car after Dischage in Bankruptcy in WI.

Title liens generally survive bankruptcy so they need to be respected afterward. If you wish to retain a vehicle, the lender is entitled to its claim on the lien which will often be the full contract price. However, you may be able to negotiate for the lender to provide you with a lien satisfaction document releasing the title for current value, after which you can do as you please. There is also a procedure available to you while your bankruptcy is still open to have the judge set the value of any property lien if you are unable to successfully negotiate a price. If you then pay that price to the creditor, the lien will be cleared. That, however, requires an adversary proceeding in federal court which can cost $1,000.00 or more in legal fees. Therefore, it may not be worthwhile to request such relief from the court for a lower value vehicle. The bottom line is that unless you are able to settle with them, the lender is entitled to possession of the vehicle if they have a valid, perfected title lien. My comments here are not intended as legal advice unless you subsequently retain me and revisit this issue with me.