If I filed bankruptcy on a vehicle but the co-signer still has it and pays the loan but my name is remained on the title, if he gets in an accident am I legally liable?

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If I filed bankruptcy on a vehicle but the co-signer still has it and pays the loan but my name is remained on the title, if he gets in an accident am I legally liable?

If he gets in an accident, will I be responsible for any accidents or tickets he gets on the car? The bank refuses to take my name off the title even though I filed bankruptcy.

Asked on July 8, 2015 under Accident Law, Arizona

Answers:

Anne Brady / Law Office of Anne Brady

Answered 6 years ago | Contributor

It sounds like you filed bankruptcy but your debt have not yet been expunged.  It can take two years or so for a bankruptcy process to play itself out.  If someone causes an automobile accident in Arizona, the at-fault driver and his/her insurance are responsible for all the damages.  Occassionally, a car owner can be held liable under the theory of negligent entrustment, but if the co-signor's name is on the title together with yours, that is not going to be the case here.


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