Legal Question in Bankruptcy in Missouri

My wife and I split up about 5 years ago for 6 or 7 months. She filed Chapter 13 during that time and included her car on it. The bankruptcy was paid off about a year ago. I was contacted last month by the company that had financed her car and they said that I, not her, I owe them a balance of $1500 on the car that was not covered under the Chapter 13 filing.

I told them that the balance should have been paid through the bankruptcy but they said this is the difference of what WASN'T covered by the bankruptcy and since my name was on the loan, and Missouri is NOT a community property state, that I was liable for the balance. Is this true or are they just trying to get more money from me/us?

Thank you


Asked on 1/03/10, 9:17 am

1 Answer from Attorneys
Alicia Beeler Villines Alicia Beeler Villines (sole practitioner)

Unfortunately for you, it's true. Let me elaborate just a bit.

In contract law, there is a concept known as "privity of contract". The contract is a private matter between the parties who made the contract. In this case, the parties were you, your wife, and the car finance company. The contract can't be altered except by agreement of ALL the parties or by law. The law alters contracts a lot less than most people think it does.

Bankruptcy law only extinguishes the contractual obligations of the person filing bankruptcy. It doesn't extinguish the obligations of other parties to the contract, except that during the pendency of the bankruptcy, creditors can't proceed against other parties. Sorry.

Read more
Answered on 1/11/10, 8:01 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Missouri