What is the best option if I want to file a Chapter 7 bankruptcy and keep my car?

It is nearly impossible to give someone advice about what the best option might be in an online forum. And you are asking multiple complex questions. Stick to asking one question per post and keep it simple. Your reasoning and proposals, such as paying off your car loan seem peculiar to me. Having a car loan is probably the best deduction you can have when you file a bankrutpcy.

You left out some key facts. How much is the vehicle worth? What other assets do you own? This is something an attorney would want to look at to determine if the vehicle can be exempted in the bankruptcy. I assume you have some equity in the vehicle and so the question is how much, can it all be exempted? Whether paying off the loan is a good idea depends on other facts in your case such as whether the debt repayment helps you pass the Means Test. You may be asked to do a reaffirmation agreement on the loan in order to keep it. This can depend on the lender, some lenders will not allow a debtor to keep a vehicle, even if you are current on payments without a reaffirmation agreement. As far as negotiating a lower payment, that is something to discuss with the lender. Many lenders are unwilling to change the terms and they are not legally required to do so. As far as the petition, yes your co-signor would need to be listed on Schedule H. However, doing so doesn't mean that they become part of your case or your petition, only alerts the court/creditor that there is a co-signor on the debt. No, the co-signor is not required to attend the 341 hearing. The purpose of the hearing is to examine the debtor, not co-signors or other parties. Caveat: Answers to questions online IS NOT a replacement for actual legal advice or being represented by a lawyer in your case. You may have left out important facts in your question that could dramatically impact answers and your results. A consultation with an attorney would involve disclosing your financial activities and situation to address possible issues that may exist in your case but that you may not have considered.

You really should sit down with a bankruptcy attorney. Do you know what the allowed exemption is in your state for motor vehicles? Do you know how to properly claim the exemptions to which you are entitled? Your situation may not be quite as simple as you believe, or it may be very simple. Without knowing where you live, what exemptions you are entitled to claim, what other assets you own, etc. it is impossible to offer a reliable answer to your questions. This forum is great for general legal information, but it is a poor substitute for personalized legal advice.

Your situation requires a full consultation with a bankruptcy attorney. You may also wish to pursue a hardship forgiveness on the student loans.

Generally you can keep your car and reaffirm the debt, allowing you to keep paying the debt until it is paid off. This will preserve both your rights and your co-debtor's rights and credit. Your cousin would not need to be at the meeting or otherwise participate in the bankruptcy. Whether it's better to pay off the car now or later is something you need to take it.

You cannot pay any creditor more than $600 in one payment before filing bankruptcy. If you pay the $400 payments, you should be okay. Your co-signor does not have to go to the creditors meeting. The creditor will probably not renegotiate.

In a Chapter 7 bankruptcy, you need to be current with your car if you want to keep it. If you aren't current, the lender could come into Court on a motion for relief and ask the Judge to lift the stay (protection) to allow them to repossess your car. If you are current, you will have to sign a reaffirmation agreement that basically states that you are reaffirming the loan and therefore if you default after your bankruptcy discharge, you will be responsible for the deficiency amount when they repossess and sell the car at auction. The deficiency amount will be the difference between what you owe minus the amount received at auction, plus costs. This can be sizeable. Your co-signor may also be responsible for the debt. You may want to consider a Chapter 13, that may allow you to keep the car and pay it off at the retail value as opposed to the loan amount. You should see a qualified and experienced bankruptcy attorney to look at all your options.

I would not pay anything off without consulting fully with an attorney as that may impact other aspects of your case. Your co-signer does not have to be at the meeting of creditors. Chapter 7 does not help you renegotiate or get a lower payment whether you have a cosigner or not. Auto lenders usually just don't do it.

You co-signor is on the hook, period. Your student loans are probably NOR dischargeable. See an bankruptcy attorney for counsel BEFORE you file.