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I believe there is a statute of limitations that says the creditor can continue to attempt collection for seven to ten years depending on what state you are in. * The SOL for debts is established by state law, therefore it will differ according to the state and to the type of debt. Secured debts are not discharged in any bankruptcy. A chapter 13 is not a liquidation BK therefore the vehicle would have to be reaffirmed with the lender or the lender could begin procedure for repossession or recovery of the debt owed. In this case the cosigner/co-debtor becomes responsible for the debt and rest assured he or she will be contacted by the lender either concerning repossession of the vehicle and if necessary a lawsuit to recover monies owed.

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โˆ™ 2006-09-10 14:22:51
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Q: Is the co-debtor of a vehicle responsible for the loan that was included in a chapter 13 after the primary borrower dies?
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Related questions

Your husband is filing chapter 7 bankruptcy and you are not but you are a co-borrower on his loans will you still be responsible?

In most states, YES

Is the cosigner the only one responsible on the loan?

The primary borrower is responsible for making the payments and adhering to the terms of the lending contract. The cosigner is legally obligated only if the primary borrower defaults on the lending agreement or files bankruptcy (chapter 7).

Is the nonfiling codebtor invited to attend the creditor meeting in a Chapter 7 case?

Codebtors must be listed in the bankruptcy, and put in the list of creditors if you want the codebtor to receive notices. No one is "invited" to the creditors' meeting, but notices are mailed to all the creditors, which/who may attend if they wish.

If you surrendered a vehicle in chapter 7 and it was not recovered by the lending agent and was later totaled who gets the insurance money?

The lender, and the borrower is responsible for any remaining discrepancy amount and the applicable fees.

Can a civil judgment be included in Chapter 13 bankrupty?

It MUST be included.

Can the primary borrower continue paying car loan if co-signer files chapter 7 bankruptcy?

Has to

What do you do if your vehicle was repossessed if you were the co-borrower and the other borrower has filed Chapter 7?

You either pay or dont pay or file B/K also. If a co-borrower has debt discharged through bankruptcy, the other signatory is 100% liable for the balance of the loan.

Can a 2nd mortgage be included in Chapter 13?


Can you file a Chapter 7 bankruptcy after a Chapter 13 has been dismissed?

Yes. It is usually the only other option for a borrower. If not the creditor might seek legal recourse in the form of a lawsuit. Even though the idea of a lawsuit is "scary" it can be a better choice than BK, depending on circumstances of the borrower.

Can you file bankruptcy on your house after chapter 7 discharge?

Your mortgage should have been included in your chapter 7 discharge. If it was- then you are no longer liable for the mortgage, but the lender can still foreclose on the property. If the mortgage was not included- then why wasnt it included.

Can a lender make you pay for a loan for which you co-signed if the borrower filed a Chapter 7 bankruptcy and is no longer making payments?

You guaranteed to pay the loan if the primary borrower does not. That is what a cosigner does. The lender is going to be looking at you for their money.

Can a co-signor on an auto loan be held responsible for the loan if the original loan was discharged in Chapter 7 proceedings?

Yes. That is the purpose for requiring a co-signor on a loan. If the original borrower can not pay or goes bankrupt the finance company then collects from the co-signor.

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