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You cosigned on a car loan what happens if the primary buyer files bankruptcy but is still able to make the car payments Will this affect your credit?
Wiki User
∙ 16y ago
If the Chapter 7 debtor was just a co-signer for credit purposes, you should be ok if you continue to make the payments. If the Chapter 7 debtor is a true co-owner, the disposition of the vehicle depends largely on the amount of equity of the vehicle. The chances are that there won't be enough equity to be worth the hassle of selling the vehicle and the trustee will probably abandon it back to the co-owner.
Wiki User
∙ 18y ago
Wiki User
∙ 14y agoShort answer, they are responsible for the debt. So, if my name was added to the auto loan only bc I was married to my ex, not to benefit by using my credit score, am I still liable? This car was repo'ed in 2003, sold for half of what was owed. In our divorce, my ex was awarded the car and to hold me free of harm from any financial obligation to that vehicle. Now, he filed for bankruptcy. Is this going to come back at me? Thanks Erin
Wiki User
∙ 16y agoThe only thing from his credit that is linked to yours is the car loan. As long as he makes that payment on time it won't impact your credit. The minute he falls behind it's recorded on both yours and his credit. His other debts and BK do not impact your score because you are not responsible for them, therefore they are not recorded on your credit report. Hope this helps!
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What happens to the co signer if the borrower files bankruptcy?
If you are talking about someone who cosigned for your loan filing bankruptcy, As long as you continue to make your payments on time, nothing will happen. If you are talking about someone you cosigned for taking bankruptcy, you may very well have to pay this loan. Contact the lender.
If you cosigned on a loan and voluntary have it returned can the company still come after you if the primary signer is making payments?
Don't understand what you mean by the phrase, "...voluntary have it returned..." However, as long as the primary indebted party is current in their payments there would be no reason for the loan company to contact you for payments.
If the primary borrower on a cosigned car lease dies. what happens to the car?
The person who's name is on the Title is the owner of the car.
What happens to the primary if the co-owner files for bankruptcy?
The primary would be held liable for the debt.
Will a bank repossess a car from co signer if primary goes bankrupt?
Only if the primary has said s/he will surrender the property in the bankruptcy and/or if the cosigner does not make the payments due.
I cosigned a loan for my granddaughter she has filed bankruptcy will her creditors come after you too?
If you are a cosigner on a loan, you are responsible for the debt of the loan if the primary signed defaults on the loan. So, yes you can be called to pay on the loan by the creditors.
What happens when a cosigner declares bankruptcy-not the primary owner?
Nothing unless they filed on your loan.
If you filed bankruptcy would your house be foreclosed on?
If you file for bankruptcy the court will be in charge of finding a fair settlement. They can require the person in bankruptcy to sell their primary residence if that is the main asset of value. The rules vary by jurisdiction. Independent of the bankruptcy the lender who has a loan secured by the property can foreclose and force the sale of the home if the payments are not made as agreed. A bankruptcy does not release the borrower from keeping up the payments on the home loan. As most loans state, if you fail to keep up with your payments your home is at risk.
What happens if when cosigned mortgage loan goes into foreclosure?
The foreclosure is reported under the names of the primary borrower and the co-signer. The co-signer is equally responsible for paying the loan.
If you cosigned on a car loan and the primary defaulted now the lender is threatening to issue a judgment against you what does that mean and how do judgments work?
If you cosigned a car loan and the primary defaults, you are now legally responsible for repayment of the loan. If payments are not made on the loan the vehicle may be subject to repossession by the lending institution. As the cosigner on the loan you have guaranteed that if the primary does not make payments YOU WILL. If you do not want this situation to adversly affect your credit, make sure the payments are made. A legal Judgment is issued by the court, and is an attempt to collect a debt that is owed the plaintiff/lending institution. This could include repossession, or deducting the payments from your payroll checks. How long will it take from the date of the notice of Judgement is sent to your house.Is it 10-day grace period and 30 days to paperwork and court date? If so, since she is filing bankruptcy shouldn't I file also since I'm told the loan is for 10,000 yet the car is only worth $300.00 in a lien sale and is not worth the repair. Is there any way to tell if the car was insured? Help!DWood
If a person cosigns on a vehicle loan and is listed as the primary buyer on the title and the person they cosigned for has refused to make any payments can the the cosigner regain ownership of the car?
If a person's name is listed on a title, that person owns the car. If a person merely cosigned the note, that person's name will not be on the title. If you own the car, you certainly can take physical possession of it.
Can a car be repossessed if a primary buyer files bankruptcy and the co-buyer has possession of the car but falls behind on payments and the court rules that the vehicle belongs to the lendor?
yes
