8

Four years ago, I thought I was cosigning on my son's car. At the time, I was in Oklahoma and he was a New Mexico, so everything was done through FedEx. I have since moved to New Mexico and experienced some financial hardships. Therefore, I’m looking at filing chapter 7 bankruptcy before the end of the year.

I found out that I am actually the primary on the car and he is the cosigner. How is this going to affect the loan if I file for bankruptcy? The loan is current and he has never missed a payment. Will he be able just to continue making payments and keep the car? I have my own car that I still owe about $5000 on that I want to keep as well. That loan is also current.

Community
  • 1
Connie
  • 81
  • 1
  • 2

2 Answers2

22

If he wants to keep the loan he needs to take you off of it (probably through refinancing). Otherwise I'm guessing it will be called and since both of you are responsible your son will be left holding the bag. There's no such thing as "primary", you're both equally responsible.

You should probably discuss this with your bankruptcy attorney.

littleadv
  • 190,863
  • 15
  • 314
  • 526
9

You should consult with your lawyer about two things before your bankruptcy:

Should your son refinance the car loan to get your name off of it?

You don't want your bankruptcy to make the auto loan insolvent.

Is it advisable to get your name off of the car's title?

This may be seen as an attempt to hide assets.

MonkeyZeus
  • 8,813
  • 3
  • 25
  • 49