Cars & Vehicles
Repossession
Debt and Bankruptcy

What should you do if you cosigned on a car that your husband filled for bankruptcy on and they repossessed the car over a year ago and still haven't contacted you about paying them?

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Wiki User
2006-08-25 02:29:50

1st-- verify that you were not included in the bankruptcy--I've

seen plenty of spouses that thought they did not go bankrupt but

did. Signatures were requested by the attorney for certain

paperwork--you signed without paying too much information---later

you might find out you had been included in the bankrupcy. 2nd--if

you were included in the bankruptcy and it was done jointly. Then

that would answer your question about the car. The lender can't

contract you because of the bankruptcy. Now, if you were not

included in the BK and you are sure that you signed the promissory

note on the car, then you should call the lender and ask for a

detailed letter as to what happened with the account. You need to

know that you might be opening a can of worms but it is either now

or someone calling you later on this! You might find that when the

car was sold, there was enough money to take care of the balance

and any repo fees--so it is paid off. Or you might find that there

is a deficit balance that has to be taken care of. (the car didn't

sell for enough and there still a balance due) Make arrangements

with the lender to pay off the balance -- see if they will re-write

the balance as a brand new loan so that you can pay installments

and get this reported as a good account on your credit report. You

may have to do some explaining on your credit for the account that

shows up as a repo. You can request that a quick explanation be

added to the repo account on all 3 credit reporting agencies.


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