Legal Question in Business Law in California

Law enforcement won't do anything. You should contact a local attorney with experienced representing creditors in bankruptcy. The facts that you describe do indicate the possibility of fraud, but even fraudulently incurred debts can be wiped out on bankruptcy if you don't take the proper steps.

If you want to prevent him from getting a discharge of the debt owned to you, you need to file a lawsuit in bankruptcy court called an adversary proceeding. The time deadline to do this is very short, so you should consult an attorney right away.

It would have been helpful to know whether this was a new or used car dealer. I assume used, since new car dealers aren't generally failing these days. In any case, as Mr. Starrett says, you'll need a lawyer ........ one who represents creditors in bankruptcy court. Filing a secured creditor's claim within the time limits is important. I assume you received official notification of the bankruptcy proceeding.

Both previous answers are entirely correct. The debt will be discharged in bankruptcy unless you file a bankruptcy adversarial proceeding to obtain a fraud judgment. Otherwise your money is gone. Bankruptcy time limits are short and there are far fewer exceptions and options for setting aside missed deadlines than in most cases. Contact a lawyer Monday morning.