Legal Question in Credit and Debt Law in Virginia

I refinanced a vehicle a about a year and a half ago. I received the title in the mail from the original lender. I was in a rough financial spot, and made a judgement call to sell the vehicle so I had the cash to pay bills rather then give the title to the new lender after taking it to the DMV and recording the new lender. I received letters in the mail saying the new lender needed the title showing them as the lien holders but obviously as I sold it, I no longer had it. They later raised the interest rate of the loan.
I am headed down the road of declaring bankruptcy, more the likely CH 13. I just wonder what/how this debt would be viewed as their is no collateral to collect. Would it be dischargeable? Would I still have to pay loan in full? Would I be in further legal trouble?

Asked on 12/09/09, 7:41 pm

Michael Hendrickson Law Office Michael E. Hendrickson

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If it's a Chapter 13 bankruptcy filing, you'll probably be expected to pay

back at least part of this loan irrespective of whether it's backed by

any collateral or not.

Answered on 12/15/09, 8:31 am

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