Hold Car Title as Collateral Against Charge Off

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Question:

We have a paid off car loan that was part of a bankruptcy. We charged off $1600 of that debt, so can we hold the title as collateral against that amount?

Answer:

This is a question for your attorney since there is a bankruptcy involved. I would venture a guess that the $1600 was part of the bankruptcy and discharged. If this is the case, they no longer owe you the $1600 and you have no legal right to hold their title.

First published on BankersOnline.com 12/01/08