Legal Question in Wills and Trusts in Ohio

If the car loan was secured by a lien on the car then you will either need to sell the car to pay the loan or allow the bank to reposess the car.

You should consult with a probate attorney who can help you with this situation.

The bank was a secured creditor and therefore the debt should be satisfied by the proceeds from the car if sold. The difference would become an unsecured debt of the estate and therefore can only be paid out of the assets of the estate, if any. If not, then the bank is out of luck. Unsecured creditors of a decedent can only get paid out of the probate estate, so assets that pass outside of probate are unaffected. However, if there are assets in the probate estate but they are not sufficient to satisfy all the debts of the estate, the estate would be insolvent and the the court would decide how much each creditor receives after certain other debts are paid. If you need further assistance, please contact my office at http://www.socrateslegal.com .