Vehicle titles and transfer issues 

A vehicle title is the document that shows that you own the vehicle. If you’re still making payments on your car you may have a title with a lien or the financing company has the title. You still own the vehicle (and have to list it as an asset on your Schedule A/B) even if the financing company has a lien or is holding the title while you make payments.

If you own your car outright, you have the title to your vehicle. If you’re not sure where you have it, visit your state’s motor vehicle department to find out what you need to get a copy of your title or a title report. 

I am on the title for a car I do not drive. Should I still list it?

Yes. If you’re on the title, you’re at least presumed to own all or part of the vehicle. Everything you own has to be listed, even if you’re not the one using it. 

I share my car with someone. Should I transfer the title to them before I file my case? 

Generally speaking, transferring title to property shortly before filing a bankruptcy case raises red flags for the trustee because it often looks like (and sometimes is) an attempt to hide or protect the property from your creditors. 

I plan to file but I recently transferred the title for a car title. Should I transfer it back?

The answer to that question depends on the unique circumstances of your case and requires a legal analysis by an attorney. 

Generally speaking, you’ll want to think about why you transferred the title. Did you sell the car and received its fair market value from the buyer in exchange? There is absolutely nothing wrong with that, as long as you make sure that you list the information about the sale in your bankruptcy forms. If you transferred the title for another reason, things can potentially get a little bit more complicated.