Dealer Closures
We witness more and more situations where customers are unable to
complete the title and registration process for the vehicles they
purchased because their dealer closed unexpectedly or filed for
bankruptcy without first filing the required vehicle title paperwork
with the county tax office for vehicles they had sold.
Dealer Status
The first thing you need to do if your vehicle dealer is closed
is determine their official status. Did the dealer just go on an
extended vacation, or did they close their business, or did they
actually close permanently and file for bankruptcy in court? The
official status of the dealership determines your course of action.
Known Dealer Closures
To the best of our knowledge, the only three dealerships in Texas
that have closed permanently and filed for bankruptcy are Landmark
Chevrolet in Houston, Bill Heard Chevrolet in Sugarland and Beal
Ventures in Spring.
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If your vehicle dealer closed and did not file for bankruptcy
To title and register your vehicle, take the following to your county tax office:
- Evidence of ownership, such as a Manufacturer's Certificate of Origin or title assigned to you by the dealer. If you do not have this document, you have the
option of applying for a bonded title through one of our
Vehicle Titles and Registration Regional Offices or
contacting your county tax office for more alternatives.
- Completed Application for Texas Certificate of Title, Form VTR 130-U, and
- Payment documents, such as a dealer sales contract, a bill of sale, 31-RTS receipt (Receipt for Texas Title Application/Registration/Motor Vehicle Tax) or an invoice.
If these documents itemize tax, title and license and indicate that these fees have been paid, then all required fees and taxes will not be due again. If the amounts are not
itemized, or payment documents are not available, then all required fees, tax and tax penalty will be due at the time of application.
If you purchased your vehicle through a cash sale, you will also be required to provide a written statement that there is no lien on the vehicle at the time of the title application at the county tax office.
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If your vehicle dealer permanently closed and filed for bankruptcy
First determine whether your vehicle is covered by a court order releasing the vehicle as an asset and awarding ownership to you. Your lienholder may be able
to help you with this determination. The Court Order or attached Exhibit must specify the VIN, and preferably the name of the title applicant(s) and any known
lienholder.
Your situation may fall in one of these three basic Court Orders scenarios:
- Scenario 1: You may be asked to provide all required title transfer documents properly completed. If a required document is not available, you will need to contact the bankruptcy attorney to obtain it.
- Scenario 2: You may use the Court Order as a substitute for one or all ownership documents if the court order specifically eliminates the
requirement of the seller's signature on items such as the form 130-U, odometer statement, etc.
- Scenario 3: Your vehicle may not be listed individually in the Court Order, in which case you must supply a copy of the court order releasing all
vehicles if such exists. Provide the court order, if there is one, with the other documents to allow you a waiver for any fees that you already paid.
At the moment, the only dealerships that filed for bankruptcy we are aware of are Beal Ventures, Bill Heard Chevrolet and Landmark Chevrolet. Bankruptcy
information can be referenced at:
To title and register your vehicle if your dealer has filed for bankruptcy without following the proper paperwork, take the following to your
county tax office:
- Original Bankruptcy Court Order, a certified copy of the Court Order, or a copy of the Court Order supplied by the department electronically
including the exhibit that specifies the title applicant and vehicle if an order exists related to your vehicle. As of February 13, 2009, no court
orders have been filed in the Beal Ventures case.
- Evidence of ownership, such as a Manufacturer's Certificate of Origin or title assigned to you by the dealer.
- Completed Application for Texas Certificate of Title, Form VTR 130-U,
- Any other supporting document required in a standard title transfer (Power of Attorney, odometer statement, etc.), and
- Payment documents, such as a dealer sales contract, a bill of sale, 31-RTS receipt (Receipt for Texas Title Application/Registration/Motor Vehicle Tax) or an invoice.
If these documents itemize tax, title and license and indicate that these fees have been paid, then all required fees and taxes will not be due again. If
the amounts are not itemized, or payment documents are not available, then all required fees, tax and tax penalty will be due at the time of application at the
county tax office.
If you purchased your vehicle through a cash sale, you will also be required to provide a written statement that there is no lien on the vehicle at the time
of the title application.
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If your vehicle dealer is open and filed for bankruptcy
If your dealership has filed for bankruptcy but remains open for business, these do not apply to you as title and registration transactions are still processed normally.
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More Information
Complaint
To file a dealer complaint or notify the Motor Vehicle Division,
complete and submit a
complaint form.
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