If I have a vehicle that I’ve been paying on but have a cosigner, what happens if they file for bankruptcy?
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If I have a vehicle that I’ve been paying on but have a cosigner, what happens if they file for bankruptcy?
The cosigner has been in prison and is getting out, I’m current on all payments. He’s going to file bankruptcy and is threatening to take my car if I don’t get his name off the car and refinance. I don’t have good enough credit to refinance. Can he take my car in the bankruptcy?
Asked on April 26, 2013 under Bankruptcy Law, Indiana
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
You would be surprised what you can do now to refinance. He is a surety on this account. He sits as a person who would be required to pay if you don't. He cannot take your car (it is not in his name). Period. The bankruptcy trustee will block this and any attempted repossession on his part would subject him to more discipline. Explain to him you are the primary borrower and if anything you can sue him for possibly damaging your credit. Explain that the vehicle is in your name and he cannot do anything. Now, this is a different story if his name is on the title of the vehicle. If so, he has every right to list this in the bankruptcy and repossess if need be.
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