Legal Question in Credit and Debt Law in Virginia

Auto Finance

I purchased a vehicle through a used car lot, with the car lot carrying the note. I have paid $10,000 and still owe about $7,000. The dealer is now demanding the balance paid now, because he apparently is filing bankruptcy. Can he demand that? And if not, and his bank assumes the vehicle, will they honor his contract with me, or can they demand the remaining balance as well? I really cant afford to come up with $7,000 just like that. I can afford only the monthly payment, as aggreed in the contract. Thanks for you time.


Asked on 1/26/08, 11:59 am

1 Answer from Attorneys
Emmett Robinson Law Office of E. F. Robinson, PLLC

Re: Auto Finance

In all likelihood, the dealer cannot accelerate your payment of the note because he is going bankrupt. Of course the sales contract governs but generally such issues are not covered in the sales contract so the only thing you are obligated to pay is what you agreed to in the contract.

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Answered on 1/27/08, 3:09 pm


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