Personal Bankruptcy Secured Debt

[greywolf]

What is the consequence of selling a piece of equipment with a secured loan, but did not pay off the loan, now filing BK. Will this go away or will the secured lender challenge?

 

[Theresagail]

You bet they will fight this--they will state you spent xx amount etc--- they may even claim you commited fraud and the debt will never be discharged-- how did the new owners get a title? The company can come after you big time -- if you file bankruptcy the trustee may dismiss your case, he is going to want to know where that $$ went -- the compnay may even file a 1099 on you too--- you should talk to a attorney.