The secured/unsecured car loan. Strange one for the attorney.

[chinup]

Had a car loan and the car of course to go with it. Lender was from Texas (me from California) so they sent me a check to register the car. I received the pink of course. Car had nothing but issues and I could not afford to keep fixing it and I ended up selling it. Yep. Still owe on the car. Car value now $14k. Loan $18k. Purchased for 21k. Attorney during consultation is not sure what will happen with it. She is thinking it is now unsecured. Any thoughts? I would hate to file and this railroad the entire confirmation.

Thank you so much in advance

[lrprn]

Even though you no longer have the car, you do still owe the remainder of the loan.

Discuss this situation with your lawyer in detail. You'll need to go with what he/she advises you about whether the loan is secured or unsecured because state law and your bk district case law decisions may impact this situation as well. Good luck - let us know how this turns out.