QUESTION
What are my options for an auto loan that I co-signed and now the co-signer wants to do bankruptcy?
Asked on Mar 05th, 2013 on Litigation - Idaho
More details to this question:
I signed for an auto loan in 07/2010 for my son his wife, she co-signed, the car is in her possession and has been since then. I was just going to co-sign, but they had bad credit, so I was put in a surprise position. They have since separated and she will not want to handle this situation, by talking to me. She has since moved on with her life. They filed bankruptcy and placed the car into it at the same time. I was not aware of this at the time.
12 ANSWERS
Michael J. Breczinski
You may have to pay the debt. Contact a bankruptcy attorney to see how the bankruptcy affects your obligation.
Answered on Mar 11th, 2013 at 2:15 PM
As a co-signer on the loan, you are liable if they do not make the payments. You may want to contact the lender and offer to take over the payments if it will repossess the car and give it to you. If you do nothing, it will hurt your credit.
Answered on Mar 08th, 2013 at 11:41 PM
You need a lawyer to challenge the bankruptcy discharge or the lack of listing you as a creditor. You may still be able to get the car back.
Answered on Mar 07th, 2013 at 7:55 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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As a cosigner you are going to be liable for the debt, even though they bankrupted. The bank is the right to sue you for the remaining outstanding balance.
Answered on Mar 07th, 2013 at 7:26 PM
Ronald A. Steinberg
The loan was made to both of you, but now you are the party responsible for payment. I say, get a lawyer and have him help you get the car. If you have to pay, then it is your car. But, you have to do it legally.
Answered on Mar 06th, 2013 at 2:25 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Why would you think YOU have options. You are not involved. The court will deal with the auto matter the way it will and you will likely be advised. You dont need to do anything. You are still obligated til the court says otherwise (if it does)
Answered on Mar 06th, 2013 at 2:25 PM
Thomas Edward Gates
You are liable for the loan amount.
Answered on Mar 06th, 2013 at 2:24 PM
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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First, you have to line up your facts better: The co-signer wants to do bankruptcy or filed bankruptcy? You co-signed, or you were just going to co-sign? For the purposes of answering this question, I'm going to assume that you did co-sign and that she did file bankruptcy. Your options are to make the payments and keep the car, or don't make the payments and let the finance company repo. If you take the first option, you can sell the car and maybe get enough to pay off the loan, or at least minimize your loss. If you let the finance company repo, they will sell the car for a pittance and come after you for the difference. That's what it means to co-sign for a car loan. One other item, though: You state that you were "not aware of this" and I'm not sure what you mean by "this". They are supposed to list you as a co-debtor on Schedule H, so that you get notice of the bankruptcy and can take appropriate action to protect your interests. If they failed to list you, you may be able to bring an adversary proceeding to declare that she is still liable to you to reimburse you for the damages she caused by breaching the contract and not giving you notice under the Bankruptcy Code.
Answered on Mar 06th, 2013 at 2:24 PM
You will still be responsible for the debt on the car as a co-signor. However, if they are keeping the car they may be reaffirming the debt in the bankruptcy and still making the payments. You would have to find out what is going on with the car.
Answered on Mar 06th, 2013 at 2:23 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Your options are to learn not to do that again. Are you the owner? If so, file a claim in the bankruptcy court for return of the vehicle. Then, when she doesn't do that, report the car as stolen and have her arrested for theft.
Answered on Mar 06th, 2013 at 2:23 PM
Employment Law Attorney serving Beverly Hills, CA
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Dordick Law Corporation
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They will be discharged from any liability and you will be held responsible. They may have some exemptions available to them and you should discuss this with a bankruptcy attorney.
Answered on Mar 06th, 2013 at 2:23 PM
Estate Planning Attorney serving Provo, UT
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Randy M. Lish, Attorney at Law
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You will have t pay the loan off. Thats the risk of signing as a co-signer.
Answered on Mar 06th, 2013 at 2:23 PM