bobterry99
New Member
In September I sold my neighbor my 1988 Mercedes for $3700. He gave me a $200 downpayment and is paying $200/month until the $3700 is paid in full. The title is in his name and has no liens. He signed a purchase agreement that outlines the payments and explains that if he falls behind on the payments ownership of the car returns to me.
In late January he filed for bankruptcy. I am listed as a creditor holding an "unsecured low priority claim".
Questions:
1. Because of the signed purchase agreement isn't my claim in fact secured?
2. Based upon the answer to #1, is his debt to me likely to be discharged; and if so, is there anything I can do to prevent it? In this regard I should mention that I can probably get him to sign either a new loan agreement or a document reaffirming the original loan if this will help my situation. (The car's ignition switch seized yesterday and he needs me to replace it for him; plus, for now he seems willing to continue the $200 monthly payments).
Thanks in advance for all replies.
In late January he filed for bankruptcy. I am listed as a creditor holding an "unsecured low priority claim".
Questions:
1. Because of the signed purchase agreement isn't my claim in fact secured?
2. Based upon the answer to #1, is his debt to me likely to be discharged; and if so, is there anything I can do to prevent it? In this regard I should mention that I can probably get him to sign either a new loan agreement or a document reaffirming the original loan if this will help my situation. (The car's ignition switch seized yesterday and he needs me to replace it for him; plus, for now he seems willing to continue the $200 monthly payments).
Thanks in advance for all replies.
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