If my mom co-signed for a leased car with me and she recently filed for Chap 7, will I lose my car even if I have been making the payments?
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If my mom co-signed for a leased car with me and she recently filed for Chap 7, will I lose my car even if I have been making the payments?
I have 2 years left on my leased vehicle.
Asked on March 30, 2012 under Bankruptcy Law, California
Answers:
Michael Duffy / Duffy Law, LLC
Answered 12 years ago | Contributor
There are certain technicalities in the lease contracts that might cause a banktupcy to affect it, but that would depend entirely on the terms of your contract and how the courts in your state treat such terms.
Outside of that, at a minimum your mother would be released of any obligations under the lease after a Chapter 7 discharge. You would be solely responsibile.
If any question does arise, given that you are current on the payments the bank would probably be willing to work with you to renegotiate the terms.
You should ask your mother to have her bankruptcy attorney review the terms of the lease to give you an answer specific to your circumstances.
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