I have a car loan of about ,000. I got this loan about 9 months ago. I am just wondering how it may affect me if my co-signer files bankruptcy.
The car is in my name and he is the co-signer. So with some this new things I know does this mean they can come take my car too? Even though I make the payments .
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What happens to my car loan if my co-signer files bankruptcy?


Robert S 6:07 am on November 8, 2009 Permalink |
You stay unaffected since the car is in your name and she’s only a cosigner.
stan c 6:07 am on November 8, 2009 Permalink |
If your co-signor files chapter 7 and includes the car, then everything is on you.
sup 6:07 am on November 8, 2009 Permalink |
The question is …who has the title? Did you default on the loan so the co-signer took it over? If that is the case, I would say he has more rights to the car than you.
eRak 6:07 am on November 8, 2009 Permalink |
Assuming the car is in your name, being one of the co-applicants, you’d have to deal with settling the loan. It’s best to talk to a bankruptcy lawyer on this. But as fas far as I know, it’s best to have some kind of insurance on this loan that will keep the monthly payments flowing come what may. If nothing works and the bank has it’s way, it’s within its rights to repossess the car.