QUESTION
Trading in a cosigned car that is involved in ch 13 BK
Asked on May 21st, 2020 on Bankruptcy - Louisiana
More details to this question:
I cosigned a car for my son and later filed BK. The car was filed in the BK and I make payments on it for him. He has never filed. My question is, will I need permission if he wants to trade in the car on another car loan in his name only?
1 ANSWER
This seems to be a question for your Chapter 13 attorney. Your question does not say whether the vehicle is titled in your name or not. If the vehicle is not an asset in your bankruptcy case and you are just making payments, then your monthly budget will have to be adjusted if the car payment goes away. If your name is on the title and the vehicle is an asset in your bankruptcy case, you will need to file paperwork in your bankrutcy case showing the removal of the vehicle as an asset and the change in the monthly budget.
Answered on Jun 09th, 2020 at 9:27 AM