What can I do if a business went bankrupt and did not pay off a loan on my behalf?
Question Details:
I bought a car about 2 years ago at the same time traded 2 cars. However, 1 of the cars had a loan which the dealer said would paid off once I paid the down payment. It took a couple off months to pay him the down payment but I eventually did. He said just call my loan company to call him to arrange payment. I thought that was the end of it but he never paid. A year later the bank to me to court for the remainder of loan that was not paid off. I then went to the dealership but was that the old dealer filed for bankruptcy this year. What can I do now?
Business Law Answers
This sounds like the company failed to pay off the loan as per your agreement and the dealer is the one that is at fault here, not you. However, the bank is not going to simply accept your story. therefore, I suggest that you contact the bank and provide the bank with all the documents that you can obtain to prove that you paid the dealer for the car in full. Given the fact that banks keep records for 7 years you should be able to go to your checking account and locate the checks that you wrote out to the dealer for the car. you should then match this up with the contract that you should have with the dealer for the payoff. The bank should see that the dealer pocketed the money and file BK.
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