What Happens To My Car Loan If My Co-signer Files Bankruptcy?

Posted by admin on December 16th, 2009 at 06:45am

I have a car loan of about $10,000. I got this loan about 9 months ago. I am just wondering how it will affect me if my co-signer files bankruptcy.

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4 Comments for What Happens To My Car Loan If My Co-signer Files Bankruptcy?

1. Eddie | December 16th, 2009 at 7:14 am

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.
2. sup | December 16th, 2009 at 7:23 am

If your co-signor files chapter 7 and includes the car, then everything is on you.
3. butterfl | December 16th, 2009 at 7:30 am

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.
4. stan c | December 16th, 2009 at 8:19 am

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