Will bankruptcy help me if I co signed for my sister for a car and she stopped paying? 28 Answers as of May 30, 2013

I co-signed a car for my sister and she stopped paying. Will bankruptcy help me? I am considering using a law corporation for my bankruptcy but I am not sure if bankruptcy is the answer.

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Law Office of Dede J. Agrava
Law Office of Dede J. Agrava | Dede J. Agrava
Yes, If you qualify and file for bankruptcy you can include debt that you co-signed for. Then if you receive a discharge you would no longer be responsible for the debt but your sister still would be.
Answer Applies to: California
Replied: 1/26/2012
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
When you co-sign for a car loan you are responsible for the loan just as if it was your car loan. The only difference is that both you and your sister are responsible for the debt. If the car is repo'd the lender that holds the loan will usually wholesale it through a dealer type auction and get whatever they can for it. The amount they receive at the auction will be subtracted from the full amount of the loan and the bank will send you a bill for the difference. This is known as the deficiency. The good news is that this deficiency is dischargeable in bankruptcy.
Answer Applies to: California
Replied: 1/26/2012
J.M. Cook, P.A. | J.M. Cook
Yes. Bankruptcy would discharge the liability on the loan. Use a competent bankruptcy attorney to consult and file.
Answer Applies to: North Carolina
Replied: 1/26/2012
Bankruptcy Law Center
Bankruptcy Law Center | Bill Zurinskas
You can discharge a co-signed obligation in your bankruptcy.
Answer Applies to: Colorado
Replied: 1/26/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you file a bankruptcy, then you are no longer responsible for the debt but she will remain liable.
Answer Applies to: New York
Replied: 1/26/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    First of all, unless you hire a lawyer, do NOT file. Let me stress that. Pro se bankruptcies usually are disasters. Properly done, if you qualify, bankruptcy may help you. See a lawyer to determine if you should and then to handle it.
    Answer Applies to: Georgia
    Replied: 1/26/2012
    Law Office of Louis S. Haskell
    Law Office of Louis S. Haskell | Louis Haskell
    Yes. You can discharge a loaned you cosigned. The bank will still be able to sue your sister and repossess the car, but you will be off the hook.
    Answer Applies to: Massachusetts
    Replied: 1/26/2012
    Law Office of John C. Farrell, Jr.
    Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
    I would suggest seeking the advice of a bankruptcy attorney to see if you even qualify for bankruptcy. You can also seek out the debt forgiveness or settlement avenues as as means of resolving this account.
    Answer Applies to: Massachusetts
    Replied: 1/26/2012
    Grace Law Offices of John F Geraghty Jr.
    Grace Law Offices of John F Geraghty Jr. | John F. Geraghty, Jr.
    It would not be the answer unless you cannot get the creditor to pursue your sister.
    Answer Applies to: Georgia
    Replied: 1/26/2012
    Law Offices of Robert P. Taylor
    Law Offices of Robert P. Taylor | Robert P. Taylor
    A Chapter 7 should wipe out your liability if you qualify.
    Answer Applies to: California
    Replied: 1/25/2012
    AyerHoffman, LLP
    AyerHoffman, LLP | David C. Ayer
    You should consult with a bankruptcy attorney to determine if filing is right for you. You are responsible for the payments on the car. The lender can come after you. A bankruptcy would likely result in repossession of the car as it would both discharge any payments in arrears and your obligation to pay under the finance contract. It would remove your responsibility, but it may have other negative repercussions on your credit and obligations.
    Answer Applies to: Massachusetts
    Replied: 1/25/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Well, the bankruptcy would get you out of the debt. So, if you filed you would not be liable on the car loan.
    Answer Applies to: California
    Replied: 1/25/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you file for bankruptcy then your obligation to pay for the car loan will be discharged and the bank can then repossess the car and can go after your sister for the balance owed after the car is sold at an auction. If you are on the loan and title then you are not really a co-signer but a co-owner and co-debtor on the loan. Co-signer means you are liable only if the person on the loan contract does not pay and then your name would not be on the loan statement. Most people who think they are co-signers are actually just co-debtors and co-debtors on the loan and the bank can go after either one of them for the balance of the loan. Ater the bankruptcy the bank cannot go after you but they can proceed against your sister after repossessing and selling the car. Make sure the car is insured for what could happen to it since you have to protect it and if it cannot be repossessed undamaged then you might have a big problem even if you file a bankruptcy case.
    Answer Applies to: California
    Replied: 1/25/2012
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Bankruptcy discharges your personal liability on your debts and debts that are your liability via cosigning.
    Answer Applies to: Indiana
    Replied: 1/25/2012
    Philip R. Boardman, Attorney at Law
    Philip R. Boardman, Attorney at Law | Phil Boardman
    Yes, filing bankruptcy will eliminate your liability on that car loan.
    Answer Applies to: Virginia
    Replied: 1/25/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Yes it will help you eliminate the liability created by co-signing the loan that your sister is no longer paying for, and all other unsecured debts.
    Answer Applies to: Florida
    Replied: 1/25/2012
    The Smalley Law Firm, LLC | Cary Smalley
    Bankruptcy would likely discharge your obligation for the debt.
    Answer Applies to: Kansas
    Replied: 1/25/2012
    THOMAS G. GILL, P.A. | Thomas G Gill
    Your obligation as a co-signer is 100% dischargeable in Bankruptcy. Whether it is the best way to proceed depends on a lot of factors.
    Answer Applies to: Maryland
    Replied: 1/25/2012
    Law Office of Stephen P. Dempsey
    Law Office of Stephen P. Dempsey | Stephen P. Dempsey
    Bankruptcy is a very serious legal step and requires for you to properly assess your financial situation prior to filing. Often debtors can negotiate with certain creditors to avoid the need for bankruptcy. An attorney can assist you in negotiating with creditor and should provide a thorough evaluation of your financial situation.
    Answer Applies to: New Jersey
    Replied: 1/25/2012
    Law offices of John P. Brooke | John Brooke
    Filing for a chapter 7 bankruptcy will discharge the debt you owe to the bank for the car as a co-signor. It may only make sense to file for bankruptcy if they are actually coming after you for the debt. If they are not coming after you then it may not be necessary for you to file.
    Answer Applies to: New York
    Replied: 1/25/2012
    The Law Office of Jill Rose Quinn | Jill Rose Quinn
    Yes.
    Answer Applies to: Illinois
    Replied: 5/30/2013
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    A co-signer can file an individual bankruptcy. You should consult with an attorney to discuss the options.
    Answer Applies to: California
    Replied: 1/25/2012
    Law Office of Asaph Abrams
    Law Office of Asaph Abrams | Asaph Abrams
    A cosigner is on the hook in the event the other signer defaults on the loan. Bankruptcy could discharge the cosigner's liability, but the other signing party would remain liable (absent application of 11 USC 524(a)(3), which is not applicable to brother-sister co-debtors). A credible bankruptcy attorney could advise whether bankruptcy is the answer.
    Answer Applies to: California
    Replied: 1/25/2012
    Compass Legal Group | Kelly Stairs
    Yes. A bankruptcy can relieve you of this joint debtor obligation. However, the creditor will still have the right to collect from your sister, repossess the vehicle, and hold her liable for the deficiency.
    Answer Applies to: California
    Replied: 1/25/2012
    Law Offices of Lawrence J. Marraffino, P.A.
    Law Offices of Lawrence J. Marraffino, P.A. | Lawrence J. Marraffino
    Yes, it can discharge the debt as it pertains to you. Most lawyers strongly recommend NOT using an online legal service to file bankruptcy. You need the personal services of a real attorney to file. Bankruptcy law is complicated and very fact specific.
    Answer Applies to: Florida
    Replied: 1/25/2012
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If you co-signed and she stopped paying, you have to make the payments or turn the car in and pay any difference between what they sell it for and what is owed. Whether or not bankruptcy is right for you depends on many different things, you may not even be eligible or may end up where you are actually making bigger payments than if you took the car, sold it yourself and paid the loan off.
    Answer Applies to: Michigan
    Replied: 1/25/2012
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