The person whos name is on the TITLE as OWNER gets to keep the car IF no one has it as collateral for a loan in DEFAULT.
The private seller holds the title until paid in full, he should transfer the title to private buyers name and place a lien on title then the title will be mailed back to the private seller and once vehicle is paid the seller signs off on the lien and mails the title to the buyer. A contract/bill of sale should be signed by both parties to the payment agreement established for the protection of both parties.
Take the buyer & title to the car with you to the lender that holds the lien on the vehicle. Use the money he is paying you to pay off the loan and get a lien release from the lender. Sign the car over to the buyer at the lender's place of business. Take this lien release and the title with you and the buyer to your DMV, and transfer the car into the buyer's name.
Better is a relevant term. Private party sales can a be a disastrous headache with the amount of time you would spend dealing with a potential buyer. A used car buyer service would be the quickest way to dispose of the car but they will probable make an offer closer to or lower than the wholesale value. How quickly do you need to get rid of the car and how much time do you have available to spend trying to get rid of it would be the questions you need to answer.
The BK trustee usually waits until two payments have been missed and then files a Motion To Dismiss. There will be a time specified (usually 30 days) in which missed payments can be made up in FULL. If the amount owed is not presented before the time expires the 13 will be dismissed without further notice. If the filing is less than 60 months the trustee might agree to meet with the party involved to discuss possible modification of the BK plan.
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