[BoopsForever]

I don't know what defense I have, but I allowed a car to go back (per the bank's suggestion) because I missed a payment. I was also told that all the payments I had made previously were never applied to my loan (7 months and $2000 down) and that I was just paying interest so I should return the car.

I'm pretty sure that the car was sold to the same dealership as that's where they wanted me to take it. The dealership and bank should never have approved the loan for me as my house payments and utilities were what I made. They say they aren't in business together, but from the type of loan they gave me and asking me to return the car to the dealership tells me something different.

Do I have any defense at all and if so is there anywhere I can research it. If I file Chapter 7, what will it do to my house?

[Mr. Knowitall]

You can prove in court whatever payments you made that haven't been properly credited to your balance.

Bankruptcy exemptions are different in each state.