How to Sell a Vehicle Included in Discharge in a Bankruptcy
A personal bankruptcy reaches a successful conclusion when the bankruptcy case receives a "discharge" from the bankruptcy court. A discharge means all post-bankruptcy petition debts have been discharged. Depending on which Chapter of personal bankruptcy under the United States Bankruptcy Code you have filed, you may still have assets on hand that you want to sell. After you have received a bankruptcy discharge, you are now free to sell off your personal assets as you wish.
- Difficulty:
- Moderately Easy
Instructions
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Make sure you have received the final discharge from the bankruptcy court. If you have an attorney, you can simply call them to receive a copy of your discharge order. You can also call the bankruptcy court for your district and ask to have a copy of the final discharge order mailed to you. It is a good idea to have a copy of your bankruptcy discharge in your personal files if it's ever needed.
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Check the title of the vehicle you wish to sell. Make sure you own the title of the vehicle and that there are no liens or encumbrances on the title. The bankruptcy court will have let you know during your bankruptcy plan if your vehicle was being sold as an asset to pay creditors. Visit your Secretary of State or Department of Motor Vehicles for a vehicle title document if you do not have one. Also, if you are still making payments on the vehicle, check with your auto loan company to see what the payoff amount is for your vehicle loan.
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Sell your vehicle. If you still have an auto loan on your vehicle, make sure you are selling the car for more than the payoff amount your auto loan company has given you, otherwise you will have to make up the difference to completely pay off the auto loan. Use your title document obtained at your local Secretary of State or Department of Motor Vehicles to sign over title to the new vehicle owner.
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