If someone files for bankruptcy(Chapter 7) 2yrs ago and they sale their car to someone else?

Question

The car was sold to someone and then that person turned around and sold it someone else... the third got the car went to DMV tp get tags for the plate and they told him that theirs a lien on the car. The person who filed bankruptcy they were told nothing about what to do with the car....2yrs ago... So, the person who filed bankruptcy thought it was ok to the sell the car.... so they did....The person who filed bankruptcy recieved some mail about the car that was sold to renew the tags for the plate.... that person who recieve the mail of the renewal turn in the renewal form and told the DMV that the car doen't belong to them no more and thats when the third person who purchased found a couple of weeks later out that their was a lien on the car ... So, someone please help so I can help this individual :-)

Answer 1

Filing bankruptcy doesn't make secured loans go away.  You no longer have to pay, but you do have to return the property the loan is against, so the original seller had no right to sell the car, and did not a clear title to do so, and should have given it back to the lender.

Apparently the second buyer never changed the title over or tagged it, or the lien would have come up then, and instead sold it to a third person.

The best advice you can give the individual is to return the car to whomever he bought it from and get his money back because neither seller one or two had the right to sell the vehicle unless and until the lien was satisfied.

Answer 2

Well, you can't legally sell a car without the title.  If there's a lein on the car, they didn't have posession of the title, so they couldn't sell it.  Then the person THEY sold it to, couldn't get a title, so they legally couldn't sell it, either.

That person is SOL.  You can't sell something you don't legally own.  He can file police charges and try to get his money back from the guy he "bought" the car from.

Answer 3

if the lien is valid it must be paid or the vehicle surrendered to the lien-holder.   The bankrupt is at fault for not informing himself of the conditions of his bankrupcy-in fact, I'm surprised they let him keep it.   he should have paid what he got for it to his creditors.   find out the terms and conditions of the lien, and who has it, and why.