Does a creditor have to give up the title to a car once the claim has been paid even if the bankruptcy is not yet discharged? (Chapter 13)

Question

Does a creditor have to give up the title to a car once the claim has been paid even if the bankruptcy is not yet discharged? (Chapter 13)

Answer

That answer to your question depends on the terms of your plan. If you are altering the loan terms by doing a cram down or reducing the interest rate, the discharge is what makes the change permanent. If the case is dismissed for some reason, the original loan terms are reinstated. In most cases, the lien rights remain until the court enters the discharge.

Answer

If the secured portion of the claim has been paid, you can always request the title. However, the creditor is not obligated to release the title until the Discharge is entered.