QUESTION
If the collateral for a secured loan no longer exists can I be sued if I file bankruptcy?
Asked on Mar 01st, 2013 on Bankruptcy - New Jersey
More details to this question:
The car that was used for collateral blew the motor and was hauled to scrap yard the loan company thinks it is still around.
7 ANSWERS
Richard hirsh
I assume that whatever caused the vehicle to blow the engine was not an insured loss and that the car was totaled. You should advise the lender of this. Typically, the bankruptcy should discharge the debt unless they can prove that you intentionally or fraudulent destroyed the collateral. The vehicle might have some value to the lender, although it does not sound like much.
Answered on Mar 05th, 2013 at 11:57 PM
Based on the information provided, since the car is no longer available a case can be made that the loan is no longer secured therefore it can be discharged as an unsecured debt.
Answered on Mar 04th, 2013 at 12:50 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Although you should have notified them, I doubt that is the type of disposal of collateral that will get you sued. Hope you have proof.
Answered on Mar 04th, 2013 at 12:49 PM
As long as you didnt intentionally wreck the vehicle, this shouldnt be a problem.
Answered on Mar 04th, 2013 at 12:49 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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As long as there was no fraud you should be okay, the may be entitled to whatever you received for it if you transferred its title.
Answered on Mar 04th, 2013 at 12:48 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Probably not. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Mar 01st, 2013 at 11:55 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Show them that it blew up.
Answered on Mar 01st, 2013 at 11:54 PM