What happens if my friend-s wife co signed on a loan for my motorcycle but now she is going to file for bankruptcy?

Will this affect me? Am I at risk of loosing my bike? I have made all the payments on time,.

Asked on August 6, 2014 under Bankruptcy Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

The bike will only be repossessed if payments are not made on time and in full. Assuming they are, the dealer or lender (whoever provided the financing) has no interest in repossessing the motorcycle--they want your money, not the bike. What the bankruptcy means is that  if you default and suffer any loss--repossession of the bike, say, or else being sued by the lender from the remaining balance of the loan--you will be limited in your ability to sue the co-signor to recover money from her. It also means that in the event of a default, the lender will go after you, not her, because the bankruptcy will protect her.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.