Expert: Terry Leeders - 10/28/2008

Question
I filed bankruptcy (discharged in Oct. 2002),which included my car. The bank would not reposess my car (even though I wanted them to) because my ex-fiance was co-signer on the loan and wanted to keep the car and make the payments. So, the loan and memorandum title were still in my name, with him as a co-signer on the loan.  He took the car and moved to Las Vegas, NV in 2001. What happens to the car title in a case like this? I now have a collection on my credit report from a towing company in Las Vegas for this car that I have not had posession of since 2001! The towing company called the BMV and was told that the car is titled to me.  How can I remain the titled owner when I filed bankruptcy on the car and the car was taken to Las Vegas and supposedly registered there? What do I do to correct this? Thank you!

Answer
Nothing happens to the car title. Your bankruptcy removed your liability for the debt, but the car is still jointly owned.  Bankruptcy does not transfer titles.  You need to transfer your interest to the vehicle to your ex to get your name off the vehicle.