If I have a vehicle and am a co-signer on the loan but fell behind on my payments, can I file bankruptcy and keep my car from being repossessed?
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If I have a vehicle and am a co-signer on the loan but fell behind on my payments, can I file bankruptcy and keep my car from being repossessed?
Are there any other options? The loan has been charged off and the vehicle is up for repo, however is still in my possession as of now.
Asked on February 5, 2015 under Bankruptcy Law, Louisiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Bankruptcy will temporarily halt repossession, but will *not* let you keep the car for more than another few months unless you pay the loan. When a debt is secured by property, such as a car loan is typically secured by the car, bankruptcy does not wipe out the security interest or prevent the property from being taken by the lender. All it does it mean that you would not have to pay money on the debt out of pocket (other than any amounts ordered in bankruptcy), but you can still lose the car.
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