Each state has different rules but generally such conduct is not required to be reported.

You can sue the person for breach of contract and other causes of action.

Probably not on the facts presented. Review the terms of the agreements you signed.

This is fraud and other causes of action. You have a lawsuit. Consult with experienced attorneys. Use the Avvo search tool to find an attorney....

They usually do not start repossession that soon. Contacting them for an extension may help.

Yes you can still drive it. You can also sell it to pay off the loan (the lender will be required to sign off).

Your friend should consult with probate attorneys. Use the Avvo search tool to find an attorney. https://www.avvo.com/find-a-lawyer

You could bring a wrongful death lawsuit.

If Your own lawyer is suing you there is a serious issues. Consult with experienced attorneys. Use the Avvo search tool to find an attorney....

The county coroner/medical examiner.