IF the auto companies go bankrupt, and your vehicle is financed through them, is your car then free?

So if i buy a Corvette, and GM goes bust in a few months, and my car is financed by GMAC, does that mean I get the car for free?
If they go bankrupt, they went out of business, therefore have no business in having a creditor come after me, when they themselves are gone, and already have filed the paperwork saying they can’t afford to pay anyone back

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Posted January 2nd, 2010 in How To Go Bankrupt. Tagged: , , , , , .

8 comments:

  1. ElGrande:

    No. Long story short, another entity will assume GM’s loans.

  2. pbleek:

    You wish! Loan is an asset and can be sold or transferred, it will not just disappear. GMAC is a separate company and will stay around in one form or another.

  3. Benjamin J:

    First GMAC is only part of GM. If GM goes out of businees GMAC wont. So you will still have to pay GMAC. If GMAC were to go out of business they would sell your loan to someone and you would still have to pay the loan. So the answer is no you will have to pay no matter what.

  4. tronary:

    GMAC is the financial part of GM and has no connection to the manufacturing part. It will not go down even if GM goes.

  5. NasserBasher:

    No your loans is basically an I O U note and it gets traded, sold to people so that they get your money and they get how much your mortgage is worth. So, if you don’t pay nobody would buy your mortgage. but if you do pay you are worth more because of the interest.

  6. jake s:

    no you cant get a free car from that. the courts will require them to give them all of the people that owe them money for cars as assets. then you will be paying the goverment the payments on your car.

  7. Frankie the Rott:

    You will be required to repay your loan immediately or have
    your car repossessed. Read the small print! aprilfool

  8. SkyPilot:

    Yeah sure. Go buy a dozen or so and then wait for them to go "belly up". You should be able to make a fortune selling them later.

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