Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
The car will have to be included in the bankruptcy because he is the legal owner of the car. If the payments have been made timely and are current, he can choose to "reaffirm" the car. This is where you promise to keep making payments and the car is not surrendered to the lender. Your Uncle would have to choose this option, and it would have to be approved by the Trustee. It may be wise for him to explain the situation to the Trustee at his 341 meeting.
Honda corp. is not allowed to deal with the car during bankruptcy there is an automatic stay in place once someone files bankruptcy. So until the stay is lifted they cannot work with you on buying the car. Further you should only offer them the NADA value not the balance of the note. They are going to get much less at auction, and they will not be able to go after your Uncle for the difference, so they may be happy to sell you the car. However, you will have to wait until the bankruptcy is discharged.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).