What to do if a co-signer on a loan files bankruptcy?
Question Details:
I co-signed on a personal loan for my ex-wife a few years ago and my car was used as collateral. I just found out she filed bankruptcy last year. I have heard nothing from the finance company. There is a second lien on my car. What are my options? What should I do at this point?
If she did not pay off the loan through her bankruptcy (such as through a Chapter 13 case) then you are still liable for any amounts still left owing to the creditor. I don't know when or if they will come after you for it, but to the extent you want to avoid the uncertainty, you may want to contact them to work out payment arrangements. Of course you can always just wait and see what happens.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
