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Can I Get Rid of My 1-800LoanMart Title Loan by Filing Bankruptcy? – Mai

“Dear Steve,

Currently trying to pay my lawyer so I can file chapter 7 BK. Took out a car title loan with 800 loan mart ($3500). Payments are 355/mo for 24 months. My husband currently lost his job and I do not think I can afford this payment.. I have to make a sacrafice, and it is either the car (we have another reliable car) or food and a house for my two kids..

Hello, Am I able to include my car title loan in my BK? If I were to decide to do this, do I just call the loan mart and tell them to come take the car? Or can I take the car to them just to get it over with? How will this be handled in my BK case?


Dear Mai,

You can hand your car over and eliminate the loan. But you should coordinate this with your local bankruptcy attorney. Don’t do anything till you talk to your bankruptcy attorney. You can click here to find a local bankruptcy attorney if you don’t already have one.

Boy, Hulk Hogan really sold out.

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • The borrower is the owner of the motor vehicle collateral when the title loan is made. The lender must sue the borrower for judgment to obtain title to sell the vehicle and such a judgment is subject to the motor vehicle exemption under the California Code of Civil Procedure. In bankruptcy, liens against motor vehicles are not dischargeable but the title loan lender’s right to possess the vehicle under the contract is not such a lien, and instead, an involuntary judgment lien which may be avoided to the extent the lien impairs the debtor’s exemption for the motor vehicle.

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