Legal Question in Bankruptcy in Florida

My car was repossessed, I had a co-signer for it. The car was already sold at an auction and has a balance left, I am unemployed at the moment as this is why I lost the car, however If I file bankruptcy on a car that was repossessed , will the balance default to the co-signer? Or if I file bankruptcy will that clear it and just show as bankruptcy.

Asked on 8/16/12, 1:15 pm

3 Answers from Attorneys

R. Jason de Groot R. Jason de Groot, P.A.

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If you file bankruptcy, the debt will be discharged as to you, not as to the co-signer, and the bank can go after the co-signor for a deficiency judgment, then collect upon it.

Answered on 8/16/12, 1:25 pm

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Nicholas McCarville McCarville Law, P.L.

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I agree with Mr. de Groot as to the co-signer liability. However, if you still possess the documents from the sale and financing of the vehicle and the repossession documents. You may have defenses to their deficiency. The bank that repossessed your vehicle must strictly comply with their secured party rights. If they do not, you may be entitled to damages, a set off, or the deficiency being waived. The documents are key and you should have an attorney look in to them you may have other remedies that you are not aware of.

Answered on 8/16/12, 1:40 pm

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