If I have a vehicle that I’ve been paying on but have a cosigner, what happens if they file for bankruptcy?

UPDATED: Apr 26, 2013

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Apr 26, 2013Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I have a vehicle that I’ve been paying on but have a cosigner, what happens if they file for bankruptcy?

The cosigner has been in prison and is getting out, I’m current on all payments. He’s going to file bankruptcy and is threatening to take my car if I don’t get his name off the car and refinance. I don’t have good enough credit to refinance. Can he take my car in the bankruptcy?

Asked on April 26, 2013 under Bankruptcy Law, Indiana


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You would be surprised what you can do now to refinance. He is a surety on this account. He sits as a person who would be required to pay if you don't. He cannot take your car (it is not in his name). Period. The bankruptcy trustee will block this and any attempted repossession on his part would subject him to more discipline. Explain to him you are the primary borrower and if anything you can sue him for possibly damaging your credit. Explain that the vehicle is in your name and he cannot do anything. Now, this is a different story if his name is on the title of the vehicle. If so, he has every right to list this in the bankruptcy and repossess if need be.

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 lock Secured with SHA-256 Encryption