If I have a court ordered judgment against someone, what happens if that person files for bankruptcy?
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If I have a court ordered judgment against someone, what happens if that person files for bankruptcy?
I sold a car to someone privately that has not finished paying but has been court ordered to do so. Howevwer, they have now filed for bankruptcy. Car sold 12/22/09; took person to court on 07/03/10. They are court ordered to pay but have not. Had to file garnishment on 08/26 but then got a letter saying that this individual filed for bankruptcy. Can I get my car back or am I out the money owed?
Asked on August 29, 2010 under Bankruptcy Law, Michigan
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
Did you retain a security interest in the vehicle when you sold it? If so, you are a secured creditor and can file a Motion for Relief From the Automatic Stay in the bankruptcy court to allow you to pursue whatever rights of repossession you have under applicable state law (which seems to be Michigan according to your post). If title to the vehicle already transferred to the debtor and you did not retain a lien against it, then you cannot get the car back. If there are assets to be distributed in the bankruptcy case you will be notified and can file a claim to share in the distribution with other unsecured creditors.
Mark J. Markus, Attorney at Law
http://www.bklaw.com/
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