Can I include the title loan on a chapter 7 and what would happen?

Most liens, including title loans, survive the Chapter 7 bankruptcy discharge so you can surrender the vehicle, keep the vehicle and pay the lien, redeem the vehicle by paying the fair market value or in the alternative, informal way, you can try to work out an agreement directly with the bank lien holder.

The title loan is secured by your vehicle. You will have to either pay it off according to the terms of the loan or surrender the vehicle to the lender. A Chapter 7 bankruptcy will not change that.

You must list all of your debts in a bankruptcy case, assuming that you qualify. The effect of the bankruptcy discharge then depends on the law. A title loan is usually secured by the title of the vehicle. In general, secured debts survive bankruptcy and entitle the creditor to repossess or foreclose on its collateral post-discharge and after closing of the chapter 7 case if the debtor falls behind on the payments. So, in a Chapter 7 case, you can discharge the debt if you turn in the vehicle to the title loan company. If the transmission went out, it is possible that the title lender won't want anything to do with the car, but it won't usually remove the lien from the car voluntarily. That leaves you in a terrible situation because the car is still under your name. It is possible that you could file a motion to *redeem* the vehicle for a small amount of money, even $1, attaching the quote from the mechanic, and an opinion of value of the vehicle from you (attaching a Kelly Blue Book report for that car) and saying that the car is worth nothing because the transmission is gone, but also asking the Court to state that if you lose, you are surrendering the vehicle through the order related to the motion and all State authorities must obey it. In light of the quote, it is possible that the title company will not oppose the motion and armed with the order allowing the redemption, the vehicle will be yours to do what you wish.

If you file Chapter 7, you have to list all your debts regardless of your intentions. Since you pledged the title as collateral for the loan, your car can be taken if you default on it. You have to state in your bankruptcy papers whether you intend to reaffirm the loan and keep making the payments, or surrender the car. It does not make sense to spend more on a repair than the car is worth. Now is the time to let it go since the transmission is shot. You can surrender the car either before or after the bankruptcy is filed, but if it's not reliable, you might as well get it off your hands so you don't have to keep it insured.

If you have a title loan on the car then it is secured, and the debt owed to the title company will not be discharged. You will either have to reaffirm the debt if you want to keep the car, or surrender the car to the title company. I realize you want to keep the car but you have to ask yourself: It will cost $2,500 to fix the car and it is going to cost me "X" dollars to pay off on lien on the car, is it really worth it?

A title loan means the lender has the title to the vehicle & in order to sell the title in the future, you must pay the loan. Also, the lender can repo the vehicle if not paid, even after a bankruptcy. Although you must include the title loan in your bankruptcy, it doesn't sound like paying the loan to keep the vehicle would be a bright move considering the amount needed to get the car back on the road.