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Why Does the Chapter 7 Trustee Need My Vehicle Title?
The Chapter 7 Bankruptcy Trustee will examine vehicle titles to determine if the lienholder has properly perfected their lien.
The Chapter 7 Trustee is obligated to perform his or her duties with due diligence. This means that the Trustee is obligated to disbelieve everything you write in your bankruptcy petition and schedules. If you list a vehicle, whether a car, truck, boat, or helicopter, the Chapter 7 Trustee is required to ensure that it is what you say it is—and that it is worth what you say it’s worth.
This means that the Trustee must ensure that the auto loan lien that you claim offsets your vehicle’s value by $5,000 actually exists. Does your car have $4,000 in equity—or $9,000?
Some Trustees in the Detroit Bankruptcy Court will also require a recent payoff statement or a proposed Reaffirmation Agreement to verify the amount that you claim you owe on the vehicle matches what the creditors says you owe.
The Chapter 7 Trustee does not, however, only check vehicle titles for lien balances. If you own your vehicle free and clear, with no encumbrance on the title at all, the Chapter 7 Trustee still wants to take a look. Do you really drive a 1998 Toyota Corolla? Fortunately, if you don’t have a copy of your physical green title (or orange in the case of salvage vehicles), Trustees will accept an electronica or E-title from the Michigan Secretary of State.
CLICK HERE for Detailed Instructions from the Michigan Secretary of State on How to obtain your E Title – Current Owner Lienholder Report
How to Obtain an Electronic (E) Title from the Michigan Secretary of State
In today’s digital age, the process of obtaining a title for a vehicle in Michigan has become much simpler thanks to the state’s Electronic (E) Title system. If you’re looking to streamline your vehicle title management or have recently purchased a car, you may be wondering how to obtain an electronic title. In this blog post, I’ll break down the steps required to get an E Title from the Michigan Secretary of State, how it benefits you, and why it’s a convenient option for vehicle owners.
What is an Electronic (E) Title?
Electronic Titles can now be obtained from the Michigan Secretary of State Website
Before diving into the process, let’s first clarify what an electronic title, or E Title, is. An E Title is a digital version of the physical paper title that serves as legal proof of vehicle ownership. Unlike traditional paper titles, E Titles are stored electronically by the Michigan Secretary of State, making it easier to manage and transfer vehicle ownership without worrying about losing or misplacing physical documents. The good news is that Michigan offers a smooth and efficient system for obtaining and managing E Titles.
Who Can Get an E Title?
Not every vehicle qualifies for an E Title, but it’s available for most passenger vehicles, trucks, and motorcycles that are:
- Registered in Michigan
- Free of any issues preventing an electronic title from being issued
If you have recently purchased a new or used vehicle, or your vehicle is paid, lien-free, or subject to a creditor’s lien you are likely eligible for an E Title. However, it’s always a good idea to double-check your eligibility before proceeding.
How to Obtain an E Title from the Michigan Secretary of State
Now, let’s dive into the steps involved in obtaining your E Title. If you’re in the process of buying or selling a vehicle, or simply transitioning from a paper title to an electronic version, these steps will guide you.
Step 1: Visit the Michigan Secretary of State Website
The first step is to visit the official Michigan Secretary of State website (www.michigan.gov/sos). The state provides a convenient online platform for vehicle title services. Once you’re on the site, navigate to the section for “Vehicle Services” or “Title and Registration.”
Step 2: Determine Your Eligibility
Before you can proceed with obtaining an E Title, you need to verify your eligibility. If your vehicle is currently titled in Michigan and registered in the state, you should be good to go. If you have an existing paper title, you can request the conversion to an E Title at any time.
Step 3: Choose the E Title Option
Once you’ve confirmed your eligibility, select the option to request an E Title. This is typically available under the “Vehicle Title” or “Title Services” sections on the website. If your vehicle is eligible for an E Title, you’ll be prompted to complete an online form.
Step 4: Provide Vehicle Information
You’ll need to input key vehicle information, including:
- The vehicle’s title number
- The Vehicle Identification Number (VIN)
- Your personal details, including your name and address
If there’s a lienholder listed on your title, you may need to provide additional details, such as their name and contact information.
Step 5: Pay the Required Fees (presently $15.00)
There is usually a small fee associated with requesting an E Title. This fee can be paid online through the Secretary of State’s website using a debit or credit card. Be sure to have your payment information ready to complete the transaction.
Step 6: Confirm the Transaction
Once you’ve entered all the required information and paid any applicable fees, review everything carefully before submitting your request. Double-check your vehicle information and make sure all details are accurate. Once you’re confident that everything is correct, confirm your transaction and submit your application for an E Title.
Step 7: Receive Your E Title
After submitting your request, you will typically receive your E Title in a few days. The Michigan Secretary of State will notify you by email or mail that the process has been completed. The E Title will be available digitally, and you’ll have access to it in your online account with the Secretary of State. From here, you can print a copy of the E Title or share it electronically as needed.
Benefits of an E Title
There are several advantages to opting for an E Title, which is why it’s quickly becoming the preferred choice for Michigan vehicle owners. Here are some key benefits:
- Convenience: No more dealing with paper titles or worrying about losing your document. Everything is stored electronically and can be accessed easily.
- Security: E Titles are protected by security measures, making them less vulnerable to fraud or loss compared to paper titles.
- Faster Transactions: If you’re selling or transferring ownership of your vehicle, an E Title makes the process faster and more efficient.
- Environmentally Friendly: Going paperless helps reduce waste, which is better for the environment.
- Access Anywhere: You can access your E Title anytime, anywhere, from your online account, making it easier to manage your vehicle’s paperwork.
What to Do if You Need to Transfer Ownership (Don’t transfer it before or during your Bankruptcy case!)
If you need to transfer the title of your vehicle, having an E Title simplifies this process as well. When selling a vehicle with an E Title, you can electronically transfer ownership to the buyer by submitting the appropriate forms through the Secretary of State’s online portal.
E-titles: The Bottom Line
Obtaining an electronic title from the Michigan Secretary of State is a straightforward and convenient process that can save you time and hassle. With just a few steps, you can convert your physical title to a digital version and enjoy the many benefits of electronic ownership. Whether you’re buying, selling, or simply looking to update your vehicle’s title, the E Title system makes managing your vehicle documentation more efficient than ever.
If you’re unsure whether an E Title is right for you or have specific questions about the process, don’t hesitate to reach out to the Michigan Secretary of State or consult with a legal professional who specializes in vehicle titles and registrations.
Stay organized, and enjoy the convenience of your E Title!
