Involuntary Transfer

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Bankruptcy

When an individual or company has filed for bankruptcy, the bankruptcy court will appoint a trustee. The trustee acts as seller.

Title Transfer Requirements:

  • Proof of Appointment. The trustee must provide a copy of the documents from the bankruptcy court appointing him/her as trustee.
    The trustee may submit a Trustee's Bill of Sale instead of appointment papers. This document is issued by the bankruptcy court and contains the signature of the trustee, vehicle description, name of the individual or company filing for bankruptcy, and the name of the buyer.

  • Lien release. Bankruptcy does not take priority over perfected liens. A lien release is required for all liens recorded on the vehicle title
  • Assignment of ownership. The trustee must complete the seller's portion on the certificate of title. If the title has been lost, destroyed or mutilated, the trustee may complete an application for duplicate title and assign ownership on a PS2000. The buyer must complete the buyer's section of the title or the PS2000.
  • Fees. All applicable title and transfer fees are due.