QUESTION
If I'm filing Chapter 7 alone, can my husband take over as the co-signor or will the bank call the loan or take back the RV?
Asked on Aug 25th, 2012 on Bankruptcy - California
More details to this question:
I'm filing a chapter 7. Married filing alone. Question we have a motorhome joint credit. I do not want to reaffirm. If my husband continue to make the payment 6 months later he fails to continue am I again responsible or am I covered in my original filing?
15 ANSWERS
Barbara A. Fontaine
If you do not reaffirm the loan, it will become your husband's loan. If he fails to pay, he loses the motorhome. You are not responsible after your bankruptcy.
Answered on Sep 05th, 2012 at 11:20 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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If you file for a chapter 7 bankruptcy, you are no longer personally liable on the debts that are discharged unless you reaffirm. If a co-signor on the loan fails to make the payments after you file for bankruptcy, you do not become responsible again unless you reaffirmed the loan. The co-signor, however, is NOT discharged by your filing for bankruptcy, and, depending on the laws in your state, may be able to file a lawsuit against the co-signor of the loan for any deficiency unless they file for bankruptcy themselves.
Answered on Sep 05th, 2012 at 12:30 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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You would be discharged of your debt. You do need to discuss with your attorney issues regarding signing or not signing a reaffirmation agreement.
Answered on Sep 04th, 2012 at 8:43 PM
Daniel James Wilson
DO NOT REAFFIRM! Your debt will be discharged. If payments are not made motor home will be repossessed.
Answered on Sep 04th, 2012 at 2:10 PM
If they let you (plural) continue to keep the RV after the bankruptcy, then no, you would not be personally responsible for any account balance or deficiency if the RV is repossessed and sold for less than the outstanding balance. Assuming there is a clause in your agreement that says if you file for bankruptcy you are in breach (and there usually is) then the bank would have the right to enforce against the collateral if you do not sign a reaffirmation agreement. Most banks do not use that right. Vehicles typically lose value faster than loans are paid off. So if the payments are made the bank is happy to take the money instead of the RV, but that is a business decision on their part, not a limitation on their legal rights.
Answered on Sep 04th, 2012 at 12:24 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You do not give me enough information to answer your questions. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Sep 04th, 2012 at 11:49 AM
Glen Edward Ashman
You need to talk to your lawyer as they may simply take it back now.
Answered on Sep 04th, 2012 at 11:48 AM
Meredith P. Ezzell
Your personal liability for the debt will be discharged by the Chapter 7 as long as you do not reaffirm. Your Husband's personal liability will not be discharged and the lender always retains its lien on the collateral, the RV.
Answered on Aug 29th, 2012 at 5:34 PM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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You'll be excused from the RV debt but bank may want reaffirmation or they will take R. back.
Answered on Aug 29th, 2012 at 5:34 PM
If I understand correctly, your husband is already a co-debtor on the loan? If this is the case you don't have to reaffirm, as long as the payments continue to be made you can keep the RV. If the payments stop for any reason in the future, you will protected by this filing, but your husband will be responsbile for the loan.
Answered on Aug 29th, 2012 at 5:33 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your liability for the obligation will be eliminated IF you are discharged in the chapter 7. Your husband will remain liable. Whether or not the lender has a right to call the loan, seeking its being paid in full, in the event of a single debtor's insolvency is a matter of the contract with the lender.
In any case you will not be liable for the loan or a subsequent default or deficiency if your are discharged as long as you have listed the obligation in your filing. Good luck!
Answered on Aug 29th, 2012 at 5:33 PM
Your Chapter 7 will relieve you of your responsibilities to pay unsecured debts and allow you to reject finance contracts such as the one for your RV. If you do not reaffirm, and if your husband is also on the note, he will be solely responsible for the payments going forward. Should he default sometime in the future, the creditor will have no recourse against you. You should consult with a bankruptcy attorney about the specifics of your situation as there may be facts which change this analysis.
Answered on Aug 29th, 2012 at 5:32 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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What the bank does is up to them. You will be protected.
Answered on Aug 29th, 2012 at 5:31 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Covered by your own filing.
Answered on Aug 29th, 2012 at 5:31 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The debt will be discharged as to you but not as to him unless he also files a chapter 7. You should use an attorney to file a bankruptcy.
Answered on Aug 29th, 2012 at 5:31 PM