Can I file for bankruptcy when a scam left me with the responsibility of paying back money?

Question

January 2005, i purchased a new car.
my grandfather co-signed with me.
later on i could no longer afford this car. i put an ad on the internet (autotrader.com) and got an email from a gentlemen claiming to be an auto-broker. i was so desperate to get rid of this car. i emailed him back and agreed that his client could buy it. i was selling this car online for 11,000. the gentlemen (the scam artist) sent me an email saying that he would send me a check for 19,000, the extra money was for shipping the car to where his client lived. supposedly. the check that was sent to me was counterfeit. the kicker is, i sent him the remainder of the 7-8,000 that was for "shipping" purposes and now the bank is holding me responsible for the money i wired the scammer. i had to give the car back to the bank. i owe the bank 6 grand for the car and another 6 grand for the money that that scammer took from me. can the 6 grand for the scammed $ be discharged in bankruptcy?
(i paid some of this bill)

Answer 1

Hello, I am so sorry you got scammed. I had a car on AutoTrader and someone tried the same thing. I was not in danger of falling for the scam, but I thought AutoTrader should have been taking a much more proactive approach to warn it's customers about the scams.
First thing, I don't think you need to file bankruptcy. While it might appear to be a quick way out, it really is not. Sorry to preach, but this is going to be an important time for you. You have to decide if you are going to step up and take responsibility and do what is best for you, grandfather and the bank, or make what I think will be yet another mistake and file for bankruptcy. And sorry to say you should have never had your grandfather co-sign with you. You have to ask yourself if you took advantage of his wanting to help you? Now his credit is damaged.
You can get this worked out, trust me. Now it is not going take one week or a few phone calls. Get everything in writing.
1. File a police report. You were the victim of serious crime. Now the police can't help you with the money side of it, but that police report acts as a legeal documentation of the facts. Also they should interview the bank teller and maybe contact AutoTrader.
You need to write letters, phone calls are a waste of time.
Start a file. Keep all your paperwork. Document any calls and who you need to contact.
Contact a local legal aid society and see if they can help you write some letters.
Write AutoTrader and state the facts also state that you believe they did not notify you how common and regular this type of fraud occurs.
As for the bank, when you deposited the check did they ask you any questions regarding the check? I believe the bank is responsible. They are well aware of these frauds and should be able to recognize a countfiet check. Looking at your account they know this is a non-standard transaction, and with one phone call they could have easily verified the check was fake.
You need to get the name of the bank's compliance officer and let them know what happened. Your goal is to have them wipe out the scammed amount and let you pay any remaining balance on the car off over so many months. When they auction the car, those proceeds will be applied to your balance and reduce it by whatever they get. So it should be less than 6k.
Take care.
PS. go to ftc.gov they may have some info to help you

Answer 2

I know this is a scary time. But the first thing that you need to do is talk to a lawyer about your situation. Having said that, the answer is probably yes, but it is linked to how much money you make due to the new Bankruptcy bill the republicans passed. The lawyer will ask you how much money you make in a year, how much you own. Like do you own a house, boat, stocks, and so on. Now the less money you make, and the less stuff you own the more likely it is to be just discharged under chapter 7. If you own a bunch of stuff and make decent money, you may have to file chapte 11 which means you get to keep your stuff but have to pay on it for a limited time within your means. The court will decide this for you. But the best thing I can tell you is get over the fear and talk to a lawyer.

Oh and in response to some of the other answers I see, they are correct about screwing up your credit history. However if you talk to a lawyer he will tell you that the day you get discharged, you will have new credit card applications sent to you. You just have to start over and it will cost you more to use credit, but at least you are not burdened by the a debt that you cannot pay. You have a new shot at it. Once you have declared bankruptcy, you tend to be a whole lot smarter about things.

Answer 3

Why would you send him the 7-8,000 back? Were you in on it or something?

First of all, I've filed and have been discharged from my chapter 7 bankruptcy for about 5 months now, and I can promise you that the bank will want the car back. Oh, and the 8 grand that you so thoughtfully gave back.

And I hope gramps isn't to concerned about credit scores. Since he cosigned for it, he will be the one responsible. You alone can't declare BK, they would just go after him.

....and to the person above who said bankruptcy will leave you hopeless for 10 years...I've been discharged from my chapter 7 for 5 months and I garauntee you, I have better credit than you. That is the most stupid misconceptions about bankruptcy. I already have 2 credit cards, to help my build my credit even higher than yours.

Answer 4

First of all that was preety stupid scam to fall for. Its like the one where a person has a winning lottery ticket and ask you for half the amount of the price cause they cant cash it cause their illegal immigrants. Anyways the scam has nothing to do whether you can file for bankrupcy. what matters is how much you make a year, and if the debt is impeding you from living your life. But with the new laws its harder to file for bankruptcy, even if the judge grants youy bankruptcy you may still have to pay a percentage of your debt, again depends on your income. Best think to do is gather all your bills and your income tax return with a couple of your pay stubs and take them to a bankrutcy lawyer. They can tell you whether you qualify for bankrutcy and whter you have to pay some of the debt.

Answer 5

believe me u do NOT want to declare bankruptcy. And you cant, unless you own property in which you are in default, if you do not, you need to pay it off, set up a payment plan with your bank, low interest 66month plan.

Never in your life do you want to declare bankruptcy. It ruins your credit for up to 10 years, you will not be able to get a credit card, or if you do your limits will be meaningless. and kiss buying a new car goodbye or buying a house....you will need a co-signer for everything, and you will pay the highest Interest rates. Ending up in the end more than 6 grand..... do not do it

Answer 6

any bill you have can be included in a bankruptcy.