Vehicles are considered secured property and the debt is not dischargeable in bankruptcy action. The situation cited would not place the vehicle in jeopardy depending upon the way the vehicle title is worded and the exemption status. In such a case it is highly unlikely the bankruptcy trustee would order the vehicle sold. That being the case any decision concerning the vehicle would belong to the lender not the bankruptcy court.
If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.
Possession is 9/10th of the law. Not if the vehicle qualified to be listed in the bankruptcy filing. In which case no action pertaining to the vehicle can be taken until the bankruptcy proceedings are finished.
With new bankruptcy laws that is no longer possible. If the person files for bankruptcy and includes the vehicle they will have to pay the entire amount of the loan.
you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.
It will only become an issue if you apply for joint credit such as a mortgage, vehicle financing, and so forth.
Probably yes. The reason for the "probably" is that you don't file bankruptcy on specific loans... you file bankruptcy in general, and it applies to most debts (there are certain types of debts that are not dischargable in a bankruptcy). Note that if you do file bankruptcy, you may have to sell the vehicle. In bankruptcy you are often required to sell certain assets in an attempt to at least partially pay off your creditors; you're allowed to keep a certain amount of equity in a vehicle specifically, and a certain amount in "general assets" (which can be applied to a vehicle or to cash or other personal property), but if the vehicle is worth more than that, you would have to sell it.
Short answer, they are responsible for the debt. So, if my name was added to the auto loan only bc I was married to my ex, not to benefit by using my credit score, am I still liable? This car was repo'ed in 2003, sold for half of what was owed. In our divorce, my ex was awarded the car and to hold me free of harm from any financial obligation to that vehicle. Now, he filed for bankruptcy. Is this going to come back at me? Thanks Erin
No. Bankruptcy has no impact on your duty to pay sales tax are purchases made after you file for bankruptcy.
Yes, how the bankruptcy will affect the ownership of the vehicle depends on the state vehicle exemption amount and if the lender will agree to reaffirm the loan. If there is no loan/lien pertaining to the vehicle then only the state exemption will apply.
The only impact it might have would be relating to future joint financial transactions; for example applying for a mortgage or vehicle loan.
There are some creditors that offer car loans to those who' ve filed bankruptcy.
The fact that you have a repossession on your credit report is not a determining factor of whether your can file for bankruptcy. Generally in bankruptcy you can remove the debts from the repossession of your vehicle.
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.
The Utah vehicle exemption is $2,500.
You really need to speak with a lawyer about this. It's all dependent on the bankruptcy laws in your state, what chapter you're filing for, etc. If the vehicle has an order for repossession on it prior to when you filed for bankruptcy, you may not be able to prevent it.
If the lender is willing to reaffirm the loan with the borrower then the vehicle can be returned. A vehicle is a secured debt and is not subject to chapter 7 bankruptcy laws.
Absolutely not! If you are still using the vehicle, it must be insured. However, the insurance payment would not be covered by the bankruptcy.
By listing the creditor on the bankruptcy schedules.
Ultimately, the driver is responsible for everything that happens while the vehicle is moving. The DRIVER is supposed to verify that the vehicle he is driving has insurance. I have been in this position, as the owner of the vehicle. And trust me it is the owner that gets the huge fine.
Sure, then the bank will come back and get the vehicle and send it to the auto auction to get as much of their money as they can. Bankruptcy only applies to unsecured loans. The vehicle loan is secured by the title of the vehicle. If you don't pay, see how long it takes the bank to inform you that the vehicle is now theirs.
Your insurance won't pay for any damage or injury to persons or vehicle. (unless they were driving legally with a drivers permit)
Yes, but the court may not allow the bankruptcy to be used to release the co-signer from the financial obligation.
A vehicle is a secured debt, therefore bankruptcy action would not reverse the repossession. Bankruptcy only places a temporary halt to repossession or foreclosure of secured property. The only option available to the borrower to recover a repossessed vehicle is to reaffirm the lending agreement or make some other type of settlement with the lender.