bankruptcy in PA
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bankruptcy in PA
my son has a vehicle loan that is co-signed by his mother. both of thier names are on the title. if she declares bankruptcy, will my son’s vehicle be included as part of his mother’s property? what can he do to protect it?
Asked on May 11, 2009 under Bankruptcy Law, Pennsylvania
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Many loan documents have standard language that says that if the borrower declares bankruptcy, the loan can be called (be made payable in full immediately). However, that does not mean the loan company can repossess the car, since ordinarily filing a bankruptcy at least temporarily prevents that, or filing suit against the bankrupt.
One solution would be to find a substitute co-signer, before the bankruptcy is filed. Another would be to pay off the loan, and take her name off the title, again before the filing.
There are a number of facts that would make a difference, about the best approach to this, and your son ought to talk to a bankruptcy lawyer in Pennsylvania (assuming that he lives there and the car is titled there). One place to look for counsel is our website, http://attorneypages.com
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