Is it legal to sell a car you filed bankruptcy on?
I’m purchasing a vehicle from someone who bought it on their credit card. I have the title and the car is registered in my name. I have since found out that they have filed bankruptcy on that card but they are still having me make the same payment. I want to know if I’m financially responsible for continuing to pay on the car after they wrote the card off?
If you have the title in your name the car is yours. You own it legally.
If you made a contract with a friend (verbal or written) to pay for the car you are still 100% obligated to pay back the debt to your friend. His bankruptcy doesn’t affect the arrangement you made with him.
If you owe him money you need to pay it back. All of it.
August 11th, 2010 at 6:07 pm
If you have the title in your name the car is yours. You own it legally.
If you made a contract with a friend (verbal or written) to pay for the car you are still 100% obligated to pay back the debt to your friend. His bankruptcy doesn’t affect the arrangement you made with him.
If you owe him money you need to pay it back. All of it.
References :
August 11th, 2010 at 6:52 pm
Credit cards are unsecured debt - that is there is no collateral that can be seized to satisfy the debt. Even though the car was purchased with the credit card, the car can’t be seized. So the owner of the car can do whatever they want with the car. There’s no paperwork linking the car to the credit card debt.
However, you should be paying the previous owner for the car, not to the credit card company. And you better be using a check or some form of traceable instrument.
You still owe the debt. Their filing has no impact on your debt obligation. They must declare your payments as income for BK purposes. If you fail to pay, the BK court can issue a judgment against you (if they know about it).
References :