If you are a Hawaii resident and are making payments to a title holder on a vehicle, do you have to continue these payments after you have filed for bankruptcy to avoid repossession of the vehicle? Does it matter how old the vehicle is or what make and model it is? The short answer is that yes, even if you file for bankruptcy you will have to continue making payments to the holder of your car title if you want to keep the vehicle.
Bankruptcy Does Not Eliminate Liens
A lien is the right for a creditor to sell the possessions owned by another person in order to repay the amount owed to the creditor. When you have a large amount of debt and have failed to repay your loans, then your creditor may repossess the possession to sell in order to get their money back. Filing for bankruptcy is a way to keep your important assets, such as a home or car, while repaying your debts. Bankruptcy doesn’t eliminate your liens, so you will have to continue to make payments to a title loan company that holds a title for the vehicle. If you do not continue to make payments, the company that holds the title to your vehicle could repossess it. The year, make or model of the car doesn’t matter in this respect.
So the really quick answer to the question; “can a title company keep your car title if you do not pay?” is that yes they can because they have a lien against that car.
Other Options
If you are a Hawaii resident and are filing for Hawaii bankruptcy, there may be other options for making payments to your vehicle’s title holder. Because an accruement of debts has led you to file for bankruptcy, the court may be able to work towards reducing the payments you are required to make to the title loan company. Until this new payment schedule is fully approved by a bankruptcy court you will still be required to make the pre-determined payments to your title loan company if you wish to keep the vehicle.
Hawaii bankruptcy laws can be complicated and confusing. If you are thinking of filing for bankruptcy in order to eliminate your debts and keep important assets you should speak with a bankruptcy attorney. More information can be found at: 1330 Ala Moana Boulevard #202, Honolulu, HI 96814. You can also speak with a bankruptcy lawyer by calling: (808) 554-0104.