Warren, MI asked in Bankruptcy for Michigan

Q: filing for car I have, it dont run. I want to get rid of car, bank gave me release of lien paper. Can I sell it?

In process of filing. The original loan was consolidated with other loans at the same bank. So seeing I'm still filing and its finalized yet, I didnt know if I could just sell the car for whatever amount, seeing i still owe the debt for it and that's what I'm filing on?

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3 Lawyer Answers
Kevin M Rogers
Kevin M Rogers
Answered
  • Bankruptcy Lawyer
  • Boise, ID

A: Get rid of the car. The title now belongs to the lending company. List the original lender, the seller of the car and the company that all previous liens were consolidated with and BE FREE of this lousy car!

Bruce Alexander Minnick agrees with this answer

Trent Harris
Trent Harris
Answered
  • Bankruptcy Lawyer
  • Jackson, MI
  • Licensed in Michigan

A: If you have a release of lien, the car is yours now and you can do as you wish with it. You can sell it but make sure you get what it’s worth. If you sell for significantly less than it’s worth, especially if sold or gifted to an insider like a friend or family member, it could hurt you in your bankruptcy. So make sure to keep good records of the sale, what you got for it, and how you spent the money afterwards.

As always, you get what you pay for. Be sure to talk to a qualified attorney about your specific situation before choosing to rely on information you get from internet discussion boards such as this one.

Bruce Alexander Minnick agrees with this answer

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Get rid of the car and list every entity who ever touched it in your petition.

Bruce Alexander Minnick and Robert Keyes agree with this answer

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