Liens on vehicles and car title loans means your vehicle is not paid for

19 Aug Liens on vehicles and car title loans means your vehicle is not paid for

One of the things a bankruptcyattorney needs to know to properly advise a client is whether the client owes money on his or her vehicle(s).

While going through the bankruptcy questionnaire with clients, I am frequently told the vehicle is paid for.

But when I get to the question of whether the client owes a finance company, I find out otherwise. The client will tell me he used the vehicle as collateral for a loan. This means the car is not paid for!

The finance company can repossess the vehicle if he or she does not make the payments on the vehicle.

I guess, because the car was paid off at one time, the person believes the vehicle is paid off. It just boggles my mind!

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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