Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificatiON
This is a common issue,
Your friend has several options,
Okay, let me see your response and I will go from there
If their is little equity, the court will not force her to give up the car, she would have the right to pay the loan on the car and file bankruptcy, she would have to reaffirm the debt. If she cannot afford the payment, than the car would be given back to the lender, and the lender can come after you for the payment. You should be very careful and discuss this with her,
One more question.
I wrote last time could you confirm my comment.
My friend keeps saying that the lienholder owns the vehicle. I keep telling her that She owns the vehicle subject to the loan and the car is collateral on the loan and if she defaults the lienholder has collateral rights over anyone to repossess the car. Could you please confirm.
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).