QUESTION

Can a car company sue me for a car they don't have and I don't neither?

Asked on May 02nd, 2014 on Bankruptcy - Illinois
More details to this question:
A loan company sued my husband and I for a car. We tried to return it to them but they would not take it. We left the car at our old house that we moved out of and called them to let them know this. Since then they have sued us. We are trying to file bankruptcy. They don't have the car and we don't neither. We don't even know where the car is. Can we put this on are chapter 7 by filing a statement of intention? Will this be a problem? This has been seen 2009 and we honestly don't know where the car is.
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5 ANSWERS

Debt is clearly dischargeable in a Chapter 7. The underlying Promissory Note is what creates the debt. The car lienholder can repo the car and sell it, and sue you for the difference. Or they can ignore the car and just sue you on the Promissory Note. In any case, the Chapter 7 will handle this debt. Good luck!
Answered on May 05th, 2014 at 3:27 PM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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This debt can be put on your chapter 7 bankruptcy & if the creditor files an objection to your discharge, it would be up to the court to decide whether you might have to be responsible for this vehicle.
Answered on May 05th, 2014 at 6:42 AM

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Maybe. Even if no one knows where the car is, the bank can still demand payment if it was not fully compensated for the entire amount of the loan. You can contact the police where you used to live to see if the car was impounded from the street. If the car was repossessed by the bank, the police may also have a record of the event. If it wasn't impounded or repossessed, you should report that the car was stolen, in which case it may be covered by your auto insurance policy. The debt can be included in your bankruptcy petition as a secured loan.
Answered on May 05th, 2014 at 6:42 AM

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Clearly, the loan company wanted money rather than the car. At this point, you can only state your intention to surrender the car and identify where it was last seen. A bankruptcy will stop the lawsuit and the loan company will have no choice but to write it off.
Answered on May 02nd, 2014 at 7:54 PM

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Debt Collection Attorney serving Chicago, IL
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They can sue.
Answered on May 02nd, 2014 at 7:30 PM

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