Q: Can a bank lawfully withhold the title of my car.if the chapter 13 was dismissed..and the bank wrote the loan off
Yes. Until the underlying debt is fully paid, the bank can retain the title.
When a bankruptcy case is dismissed, all debt obligations are treated as if the bankruptcy never happened.
In addition, the grant of a discharge in a bankruptcy case (you didn't get that far) doesn't discharge a perfected lien against any of the debtor's property (to discharge a perfected lien in bankruptcy, it must be a junior lien, and there must not be even one dollar of equity value in the property to which the junior lien can attach).
A 'write-off" of a debt by a creditor is just an internal accounting function. It does not alter any outstanding legal obligation to repay.
Lloyd M. Nolan agrees with this answer
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