WHAT HAPPENS TO MY CAR LOAN IF MY CO-SIGNER FILES BANKRUPTCY?

I have a car loan of about $10,000. I got this loan about 9 months ago. I am only wondering how it will start me if my co-signer files bankruptcy.
The car is in my name and she is the co-signer. So with all this brand new things I know does this meant they can come take my car too? Even yet I have the payments .

{ 4 comments }

sup January 26, 2014 at 1:20 pm

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 January 26, 2014 at 1:33 pm

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.

stan c January 26, 2014 at 2:20 pm

If your co-signor files chapter 7 and includes the car, then everything is on you.

Robert S January 26, 2014 at 2:39 pm

You stay unaffected since the car is in your name and she’s only a cosigner.

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