File bankruptcy or not?

Question

Ok, onto my problem. I received a collection letter for $21,000 about three weeks ago. I called the collection company and after weeding my way through the a**holes who try to act tough for their $7.50/hr and scare you into paying I was able to get someone intelligent to talk to. That person didn't have much info other than an account number with Chrysler and the amount I owed. I called Chrysler and learned that my step-brother (a convicted felon with multiple con charges) bought a car in 2001 and I am down as the co-signer. Obviously I did not sign anything for him in 2001, because I have't been on good terms with him since the early '90s. So, to me that means this auto dealership allowed him to forge my name right in front of a salesman. I want to sue the car lot, but the owner sold in 2002.

Is there anyway I can still sue him? I doubt it.

How can I get this off my credit without filing bankruptcy?..and without paying it of course.

Please remember when answering that the car dealship is no longer around. I suspect that I cannot sue them because of this. if you know differently then please tell me how. Also, this is so new that it has not shown up on my credit report yet. I pulled it three weeks ago, and once again this morning.

Answer 1

You should not file bankruptcy on a debt that is not yours.

You should first contact the Federal Trade Commission and file an Identity report with them. You should also send an affidavit to both the collection agency and Chrysler Financial along with a letter disputing the debt. Send all mail certified mail.

http://www.ftc.gov/bcp/edu/microsites/idtheft//
https://rn.ftc.gov/pls/dod/widtpubl$.startup?Z_ORG_CODE=PU03
http://www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf

You should also contact the state's attorney general, whoever owned the dealership should still have liability due to the fact it was fraud involved.

If you get an attorney, make sure it is someone who handles Fair Debt Collection and Fair Credit Reporting. If they would require a retainer, do not talk to them. FDCPA and FCRA states the defendant would have to pay them reasonable attorney fees. You should be on a contingency agreement.

Answer 2

First off, don't even THINK about filing bankruptcy because of this situation...you can resolve this, and without paying this debt which is not now nor has ever been your obligation.

Your immediate concern is not with the car dealer, either...you would not have much of a case, as you would need to prove your claims of his knowledge of the fraud (which, by the way, has happened in my area as well).

What you need to do first is to get copies of your credit report. You can do this for free at annualcreditreport.com (you can get it over the internet, or download a form for mailing). All 3 major credit bureaus must provide you with one free report a year.

When you receive these reports, you will see the account number for the Chrysler account along with many others. Contact Chrysler directly, make them aware that you intend to pursue a claim of identity theft. And then do it.

It may be that the dealership is no longer in business because of practices like this. Search the internet for any news items relating to that dealership.

Make sure that there are no other items on your credit report that are not yours, including various home addresses. Once someone has gotten away with "borrowing" your ID, they usually grab as much as they can.

In any event, pursue this with the authorities and with the Chrysler Corp., when it is all said and done, they will ultimately remove this from your records. Be sure to verify the removal, too, by getting a fresh report when this is all over.

Wishing better times for you in 2007!

***Update*** I posted the above a minute ago, and then saw your additional information...

It is very possible that this, in itself, may be a scam...a way to get personal information from you voluntarily.

Did you call Chrysler at a number that was printed on the letter you received? Maybe you weren't actually talking to Chrysler, or to a collection agency. Maybe your step-brother is a better con man than you think, and with the information he has NOW, he'll go out and buy a car...or two!

Look up a number for Chrysler on your own, call them and see if there is indeed a bad debt or anything with the account number you've been give.

Please let us know what happens, I'm very intrigued here...

Answer 3

Call the police and a lawyer. Even if you can't sue the dealership you might be able to sue the owner at that time. If you can prove by handwriting analysis that the signature on the loan is not yours, you should be able to have the collection attempt dropped. But I do find it odd that it has gone to collection but doesn't show on your report. Usually the credit bureaus show payments as late long before they are delinquent. Is it a possibility that they have mistaken you for your brother?

Answer 4

I would speak to a lawyer, its forgery plain and simple and if the salesman was present he is an accomplice, could your brother have had someone go with him and impersonate you and sign your name----I would request copies of everything from the dealer, and the collection agency, and because of this I would definetely pull all three Credit Reporting agencies and get your credit reports, who knows what else he may have done, then report everything you don't agree with and work with the agencies and your lawyer to clear everything up.. GOOD LUCK your going to need it. It will be along process

Answer 5

For one thing the co signer has to be there and his or her credit checked. Its going to cost you more or as much to sue as it would to go bankrupt."SUE" Your going to have to start by pressing charges against the brother.Seeing they said you bought the car, get the paper work and track down the dealer that sold the car.Good luck...

Answer 6

If it isn't your debt, keep calling and tell this collection agency what you just told us. You have every right to get your credit cleaned up. I would not file bankruptcy - that is no picnic, and it will wreck your credit. You may have to work at it (and I know it ain't right), but you can keep on them until you get it straight. You may even have to get a lawyer involved, but I would not trash my credit over a debt I wasn't responsible for. Good luck.

Answer 7

well i can sure see why the car dealer is no longer in business. Hopefully the owner is in jail. They must have let alot of people forge signatures just to make a sale. Unfortunately it is your word against his. Maybe you can show them your signature and compare it to the forged one.