My mother is a cosigner for my car. She uses it as much as I do. It is worth $18,000 and I owe $7,000 on it. Can the bank take my car is she files for bankruptcy?
2007-06-09 23:47:11 · 6 answers · asked by the_napster21 1 in Politics & Government ➔ Law & Ethics
No, she is a co-signer, not co-owner. Who is the car registered to? That's the person who owns it.
2007-06-09 23:55:10 · answer #1 · answered by Anonymous · 0⤊ 2⤋
When you file for bankruptcy, your property is protected by the automatic stay. Creditors cannot take any property or take any other action without permission from the bankruptcy court first.
With respect to a secured car loan, you have 3 basic choices: (1) reaffirm the debt (agree to waive a discharge of that debt) and keep making the payments to keep the care; (2) redeem the car (pay off the balance, usually with new financing); and (3) surrender the vehicle. Some courts also allow you to just keep the care and make the payments without reaffirming the debt.
The other factor is the equity. The trustee might decide to take the vehicle and sell it for the benefit of creditors. While bankruptcy is a federal law, it is largely state law the determines what property you can keep and what property you must give up for creditors. Only a local bankruptcy could tell you if the bankruptcy trustee might seize the car.
2007-06-10 01:38:22 · answer #2 · answered by Carl 7 · 0⤊ 0⤋
They can unless you reaffirm it which can be done (that means you claim bankruptcy on everything but what you reaffirm which you agree to pay on). Your mom can reaffirm the car and keep it and let you make payments but the problem I would have on that is your name could show up connected to the bankruptcy in some way.
What you really need to do is talk with the loan company about getting it in your name and have everything transferred to you, then it won't fall under her name or affect you in any way.
2007-06-10 00:49:36 · answer #3 · answered by KittyKat 6 · 1⤊ 0⤋
I'm not a lawyer but I would think if her name is not on the title then the bank would not have acess to the car. I thought the cosigner only got in the picture if you (assuming it's in your name) went bankrupt.
2007-06-09 23:57:59 · answer #4 · answered by madjer21755 5 · 0⤊ 1⤋
financial ruin submitting will postpone a repo, yet not avert it. submitting financial ruin does cost money. whether you ought to try this or not relies upon on each and every of the information you probably did not furnish... usually your finished financial image
2016-11-27 23:24:30 · answer #5 · answered by ? 4 · 0⤊ 0⤋
sorry but yes
2007-06-09 23:54:24 · answer #6 · answered by Anonymous · 2⤊ 2⤋