Personal Finance
Money Management

What if happens if you cosigned for car loan and the borrower files for bankruptcy?


Top Answer
User Avatar
Wiki User
2014-03-27 18:59:40
2014-03-27 18:59:40

if the consigner files bankruptcy can the borrower take the car

User Avatar

Related Questions

When you co-sign on a loan or mortgage for someone, you are promising to make the loan payments if they can't. When someone files for bankruptcy, they are claiming that they cannot make their payments. It would stand to reason that if someone you co-signed on a mortgage for files for bankruptcy that you would then be liable for making the payments.

You may need to consult with your own attorney. The primary borrower's bankruptcy doesn't affect your obligations as co-signer. The lender may go after you for payment.

They should be, however if the petitioner does not list, they may not be notified. However, there are ways to verify if a petitioner has filed for bankruptcy.

Thats a decision YOU have to make. Please consider the effects on your credit for each choice. Having to make that decision is a result of not considering it b4 you cosigned. Good Luck

Unfortunately, no. For all co-signed debts, both signers are liable for repayment of the debt. When one party has their obligation discharged by bankruptcy, the remaining debtor becomes 100% liable for repayment of the balance.

For any joint debts, the creditor will come after the spouse who has not filed bankruptcy.

If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.

bankruptcies do not wipe out student loans by federal law, unless you can prove extreme inablilty to repay them

You become the only person responsible for the debt. Your friend's obligation to pay the judgment ends once your friend gets his or her discharge order from the bankruptcy court.

Nothing, the ticket is not a debt and would not be included in their bankruptcy. The ticket should still be good.

Banks are insured up to 100,000.00 by the government.

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).

If you have co-signed and the primary borrower has defaulted, you will need to step up and pay. If not then it will hurt your credit rating.

Your debtors BK effects your obligation to pay the same as your BK effects your creditors obligations to pay you. That is, not at all.

The primary would be held liable for the debt.

Companies that file for bankruptcy still have to pay their employees, if they have enough money. Employees are prioritized during bankruptcy procedures, so the company will have to pay for their work.

The note becomes a part of the bankrupt individuals assets.

Notarizing a promissory note does not give the lender any special protection if the borrower files for bankruptcy. The debt would be discharged in bankruptcy unless you could prove fraud or if you had a lien on some of the debtor's property.

Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.