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Tough case here.
First of all, you take subject to the lien by the lender on the car, so if you recorded a lien on the car, you would be 2nd in line.
If he files bankruptcy, any claim of breach of contract, whether verbal or written, would be a debt he can discharge in the bankruptcy.
Unfortunately, there is no code section you could attack the dischargeability of the debt on, unless you can prove fraud in a written contract, so, if only verbal agreement, I would say you can be out of luck.
Since his case is filed, you cannot sue him on any claim, without obtaining court permission to do so, and unless you can prove the debt should be non-dischargeable, which I don't think you can, i think your only option is to see if you can either pay off the balance to the lender, or negotiate with the lender to purchase the vehicle.
It is unfortunate that this happened, but I don't see any recourse you would have.
You can discuss the matter with a local bankruptcy attorney, but it may be an uphill battle.
and a losing effort at that. I wish I had better news for you
Thank you for your question, though, good luck. PS the code section that would be your best chance is here: http://doney.net/bkcode/11usc0523.htm
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