A friend of mine file for bankruptcy I was the co sign on her car that was part of it do that leave me to pay the balance on her car? 25 Answers as of May 24, 2013

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Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
Yes, but perhaps she will pay the debt. Also, if she files a chapter 13 then you may have some protection while her case is pending.
Answer Applies to: Arizona
Replied: 5/24/2013
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
Answer Applies to: Indiana
Replied: 5/22/2013
Moffa & Bonacquisti, P.A.
Moffa & Bonacquisti, P.A. | John A. Moffa
It depends on the chapter filed and whether the debt was reaffirmed, if applicable.
Answer Applies to: Florida
Replied: 5/22/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, you are on the hook for paying for that car. That is why lenders get co-signers on risky loans.
Answer Applies to: California
Replied: 5/22/2013
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
As a co-signor you are 100% responsible for the debt, if friend doesn't pay, the lender can repo the vehicle, sell it, then go after you for deficiency assuming there is some. However, your friend may have in the bankruptcy stated that she will continue to make payments and reaffirm the loan. Many debtors choose this option because 1) they need and want to keep the car 2) they don't want to negatively impact co-signors. Some lenders will allow the debtor to keep the car as long as car payments are made even without reaffirming the loan. In either case if she reaffirms and continues to make payments or doesn't reaffirm but lender is okay with this and continues to make the payments there should be no impact on you. Check your credit score to make sure that the lender did not erroneously report the Bankruptcy on your credit report. They're not supposed to do that, so if they did, contact them to make the correction. Perhaps your friend needs the bankruptcy to eliminate other debts so that she can stay current on the car and prevent repossession or lateness. Good luck.
Answer Applies to: California
Replied: 5/21/2013
    Wellman Law LLC
    Wellman Law LLC | Keith A. Wellman
    Cosigners remain liable on debts despite the other cosigner filing for Bankruptcy. However, a Bankruptcy filing may not be a problem for you at all depending on the exact circumstances. There are several ways in which a person who files Bankruptcy can essentially keep the vehicle and continue paying for it, leaving the cosigner unaffected. If this is a Chapter 7 I would be curious whether they are current with their vehicle payments and whether the Statement of Intentions indicates that they intend to sign a Reaffirmation Agreement (essentially locking them back into that debt). If this is a Chapter 13 I would want to know whether the Plan calls for payment of the loan and whether the Plan attempts to "cram down" to the value (which would leave some of the balance remaining).
    Answer Applies to: Kansas
    Replied: 5/21/2013
    Troutman & Napier
    Troutman & Napier | Gregory A. Napier
    If your friend filed a Chapter 13, she could make repayment of this car debt part of her plan payment which would protect your. If she filed a Chapter 7 and is surrendering the car, then you will end up being on the hook to pay the deficiency balance; the rest of the debt after the car is sold at auction.
    Answer Applies to: Kentucky
    Replied: 5/21/2013
    Weber & Phillips, P.A.
    Weber & Phillips, P.A. | John G. Phillips
    If, after repossession and sale of the vehicle, a deficiency remains on the car note, then they will come to you asking you to repay that portion of the debt. They may settle with you for some lesser amount, but yes, unfortunately you are liable.
    Answer Applies to: Arkansas
    Replied: 5/21/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    If she is keeping the car then she will continue to pay for it. If she is surrendering the car then they will auction it off and then bill you for any balance left on the loan.
    Answer Applies to: Colorado
    Replied: 5/21/2013
    Law Office of Sean P Fleming
    Law Office of Sean P Fleming | Sean P Fleming
    It would depend on what your friend's intentions are with the vehicle. If they are surrendering it, that leaves you on the hook for it.
    Answer Applies to: Illinois
    Replied: 5/21/2013
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    Yes, if your friend doesn't pay for the car, you'll be responsible for the balance. You could file for bankruptcy if you are eligible, if you can't afford to pay for it.
    Answer Applies to: Illinois
    Replied: 5/21/2013
    Law Offices of A. J. Mitchell, LLC
    Law Offices of A. J. Mitchell, LLC | A. J. Mitchell
    You guessed it. To the extent your friend does not pay, you remain liable.
    Answer Applies to: Georgia
    Replied: 5/21/2013
    Jeffrey A. Cogan, Esq., Ltd.
    Jeffrey A. Cogan, Esq., Ltd. | Jeffrey A. Cogan
    If your friend filed for Chapter 7, they probably will go after you. If she filed a chapter 13, she may be paying the car off in the bankruptcy. Also, in a Chapter 13, they cannot collect from you until the friend's case is over, which could be five years.
    Answer Applies to: Nevada
    Replied: 5/21/2013
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    Yes, it does, unless she files a reaffirmation agreement
    Answer Applies to: New Jersey
    Replied: 5/21/2013
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If she is not reaffirming the car (agreeing to continue pay for it), you, as the cosigner, are responsible for any deficiency or you may be able to arrange take the car and make the payments and keep it.
    Answer Applies to: Michigan
    Replied: 5/21/2013
    Reger Rizzo & Darnall LLP | Kathleen DeLacy
    They could possibly come after you.
    Answer Applies to: Delaware
    Replied: 5/21/2013
    Idaho Bankruptcy Law | Paul Ross
    Hopefully your friend will continue making the payments, but yes you are the one that will be left legally liable for the debt if your friend does not pay.
    Answer Applies to: Idaho
    Replied: 5/21/2013
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