Anyone who a lender accepts as a co-signer (or a primary borrower) can be. There aren't laws about this...lenders have the right to decide who they lend to, as borrowers have the right to decide who they borow from (or not) on what terms. A co-signer is needed because the primary doesn't have good enough credit to qualify on their own and the Cosigner normally has very good, or at least much better, credit. If your close to BK yourself...you probably won't qualify as a co-signer to the lender anyway. Also, as a co-signer you have basically all the same obligations of the primary for payments and such, without the benefit of possession and rights to the property. If your close to BK, you apparently have enough trouble handling your own obligations to even consider becoming responsible for someone elses...esepcially someone else that apparently has a poor credit history or is taking on more of a debt than a lender thinks they could handle.
Your loan document may well provide that the entire debt becomes due and payable on filing bankruptcy by either or both borrowers. If the car payments are being made by the person using the car, and the payments are current and stay current, the lender will probably not take any action. Call and talk to the lender about it to avoid surprises, or have an attorney do it.
The loan would be part of the bankruptcy filing. I can't see how the death of the cosigner is significant. (In financial terms, that is.)
The answer is that the cosigner would be left responsible for taking over the payments. If the cosigner wants to maintain his or her credit rating (which is probably damaged due to your filing bankruptcy), If the consignor does not want the auto loan people to sue for any remaining balance, then he or she will need to keep making the payments. If the auto loan company sues for any remaining balance and gets a judgment, then the auto loan company will go after the assets of the consignor and or garish their earnings. attempt o seize their assets or garnish their earnings.
Absolutely.
As a cosigner, you are not at all protected if the primary signer files for bankruptcy. In many cases, filing for bankruptcy relieves the primary signer on the loan from his obligations towards the loan, at which point the lender will turn to the cosigner for payment. You'll either have to pay the loan or file for your own bankruptcy (if necessary).Unfortunately, you're stuck with the loan regardless of whether or not the primary signer successfully completes his bankruptcy filling. You may want to contact a bankruptcy lawyer for some additional advice or assistance.
i was able to get an auto loan with the help of a cosigner and im under 18
The loan becomes at worst like a single-signer loan. You are free to refinance or pay it off. Which you were, anyway. The only entity affected by the bankruptcy of a cosigner on a loan is the lender.
No. The cosigner would have to apply for a loan in their name using their credit, income data.
They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.
Yes
Only if the bankruptcy is currently discharged.
Yes
If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.