Klinger Law Center | Linda Klinger
Your bankruptcy should not effect their credit, and what happens to the car depends on if they continue making payments or not. As a co-signer you may be required to "reaffirm" the debt. In the absence of a reaffirmation agreement, the auto lender may repossess the car, even if payments are current. There is also the option of redemption. To get advice particular to your situation you should consult with a bankruptcy attorney in person. Information provided over the internet typically addresses broad application of the law, not the particular application to your situation, as much more information needs to be provided to the attorney before they can give you complete legal advise.
Answer Applies to: California
Ariano & Reppucci | Chris Ariano
If you file bankruptcy your car will not be repossessed. To keep your vehicle in Chapter 7, you have to be current or be able to become current right away, and your vehicle must be below the exemption amount. In Arizona an individual filer gets a one car exemption up to $5,000 in equity. Equity is determined by the value of the vehicle minus what is owed on it. Please contact us if you wish to discuss further.
Answer Applies to: Arizona