Used Car Dealer

In this case, the event precipitating the bankruptcy was the auto dealership's cashing an old check left by the debtor months before as a down payment on a car. The dealership's act emptied the debtor's bank account and left her short for all her bills. She had to file bankruptcy. Trying to get the original loan documents from the dealership to arrange for a redemption, the debtor encountered resistance from the sales office. Finally getting the documents, she found that her boyfriend's signature had been forged on the documents. While the bankruptcy case was pending, we brought suit against the dealership for the forgery in the bankruptcy court. The violation was clear. The dealership settled.

Result: Often, there are consumer law claims within a bankruptcy that can provide a benefit to the debtor. The bankruptcy court can be a convenient and favorable forum for debtors. In this case, the debtor was discharged of her debt, and through the settlement of the consumer claim, essentially got a free car.