QUESTION
If I have a loan with a co-signer and the co-signer files bankruptcy, how does it affect my loan and me?
Asked on May 27th, 2013 on Bankruptcy - Florida
More details to this question:
Ex-girlfriend co-signed on bike loan now filed bankruptcy now bankruptcy lawyer wants info on bike and states will "take" bike if I don't give info requested.
9 ANSWERS
Assuming that the co-signer's name is not on the bike's Certificate of Title, the co-signer's bankruptcy attorney cannot "take" the bike from you. However, the attorney probably just needs the creditor's name, address, account number and amount due so that he can properly prepare the co-signer's bankruptcy petition. There is no harm in giving said information to him. On your credit report there probably will be a notation next to the bike loan which essentially states "co-signer filed bankruptcy", or words to that effect. As long as you continue to make the bike loan payments, the co-signer's filing should have no negative impact on you.
Answered on May 29th, 2013 at 10:28 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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If you do not trust the lawyer you hired, then find someone you do trust.
Answered on May 28th, 2013 at 9:50 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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The interplay is actually quite complicated. I'd give info on bike. Your ex is cosigner and not co-owner right? If owner, need to exempt.
Answered on May 28th, 2013 at 9:50 AM
The ex-girlfriend's bankruptcy is not going to relieve you from that debt. If she is on the title to the bike, then she has a legal interest in it. If there is equity in the bike, if it is worth more than is owed on it, then the bankruptcy Trustee might be able to take the bike or require you to buy out her 1/2 of the equity if you want to keep it.
Answered on May 27th, 2013 at 10:44 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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Typically you are then fully responsible for the loan.
Answered on May 27th, 2013 at 10:25 PM
You alone are now responsible for the debt.
Answered on May 27th, 2013 at 10:24 PM
Sanford M. Martin
If the co-signer file for Chapter 7 BR and is discharged from liability on the debt, you will be liable for the debt. The creditor may require you to reaffirm the debt, assuming total liability, or the secured property, like a motorbike, can be repossessed.
Answered on May 27th, 2013 at 10:11 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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If your cosigner files bankruptcy, this may cause a "default" with the lender. The lender can require extra information from you, because your girlfriend is now not legally responsible on the loan. If you want to keep the bike, you still will need to cooperate with your lender. If you do not cooperate, they definitely can repossess and take the bike. These terms are usually included in any financing contract you and your girlfriend signed.
Answered on May 27th, 2013 at 10:10 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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I need more information. Who is on the title? Who is on the loan? If she was a guarantor that is one thing, but is she is a co-owner, that could be a problem.
Answered on May 27th, 2013 at 10:08 PM