You may file for a chapter 7 bankruptcy to stop the garnishment of your pay set by the courts to pay back your car loan. But once the lender no longer can collect from you, they will go after any other people who signed on the loan. If you're ex cosigned the car loan with you, even though you may have been given the car in your divorce, the loan company will still go after your ex for the remaining balance on the car loan. This is true for all debts that have cosigner and the primary file for bankruptcy, the bank or lender will always go after the cosigner for the remaining balance on the loan, which is the whole purpose of having a cosigner is so that bank has someone else to go after if you don't pay.
I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options.
Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.
Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave. Unit 2 Fall River, MA 02723 Office: 888-269-0688 FAX: 877-475-8147
Answered on Apr 04th, 2014 at 5:21 PM