What to do if a co-signer on a loan files bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if a co-signer on a loan files bankruptcy?

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?

Asked on May 29, 2011 under Bankruptcy Law, Kentucky

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

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/

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

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/


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption