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Indiana

Can a lender insist the borrower sign a new note for the balance owed after sale of a repossessed car when a Chapter 7 bankruptcy has been discharged?

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2015-07-15 21:36:42
2015-07-15 21:36:42

There are attorneys who favor this line of thinking. It will ONLY to the LENDERS advantage for you to do so. Meaning ??? It CANT cost you any more NOT to sign it. The debt is only for X number of dollars. If they want you to sign, it means MONEY to them if you do.

IF you do sign, it WILL be legal.

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You either pay or dont pay or file B/K also. If a co-borrower has debt discharged through bankruptcy, the other signatory is 100% liable for the balance of the loan.

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No. But they can ask to be excluded from the bankruptcy. Usually a deal can be made with the lender to keep a vehicle. If it is covered by the exemption and the borrower lives up to the contract agreement.

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Unfortunately no. Both private and federal student loans can not be discharged in Chapter 7 bankruptcy.

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Depending on your state... a car that is included in a Chapter 13 Bankruptcy cannot be repossed. The Bankruptcy laws protect you from repossession. Just as long as you are in Chapter 13 and are making payments to the Trustee, your car cannot be repossessed.


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