My husband an I filed bankruptcy 1yr. ago. We had a loan with our credit union, with our truck as collateral. Our loan has been paid off but they refuse to give us the title back. We also owe a visa card with them. Someone told my husband when it was paid off they would return our title. Can they do this? The visa was a unsecured loan. How can they hold our title, when the loan is paid? Is this legal?
1 Answer from Attorneys
Re: Credit Union
Normally, you should receive your title back on your vehicle held as collateral for a loan upon receipt of your payment in full. But, depending upon what took place during your bankruptcy and reaffirmation of the debt of your automobile, the Credit Union may have some claim on the title. I would suggest discussing this problem with the attorney that handled your bankruptcy to see if you signed a reaffirmation agreement that allowed the Credit Union to maintain your title until all debts to the Credit Union are paid.