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In a bankruptcy filing, what happens to a vehical when the 1st person on the loan files, and the co-signer does not.
Hello,If the loan is up to date, the vehicle will not be repossessed. If the loan is not up to date, once the bankruptcy is closed, the lender can repo.
Is the person filing bankruptcy removed from the loan, and the co-signer now fully responsible? The co-signer currently is unemployed, and may not be able to make the payments either, but does not not have enough debt to warrant bankruptcy themselves.
Hello,Thank you for the clarification.The debtor will typically be discharged of any personal liability on the car loan. If he defaults in payment, the creditor can repo the car and file an action against the co-signor for any deficiency.
Sorry for the stupid question, but what would the action against the co-signer be. The first on the loan is my spouse, the co-signer is our child who just turned 21, I hate to cause trouble for the child..... But it is their vehical.
Hello,The action against the co-signor would be a collection action for any amount still owing on the vehicle after the vehicle was sold by the lender after repo. If this is not clear, please do not hesitate to post me back.
The co-signer, our child, has nothing of value, is unemployed. The vehical is a 3 year old, high mileage, gas guzzling, been in a couple fender benders, built by a bankrupt American automaker, 1/2 ton pickup truck. They can't sell them new, this one probably wouldn't fetch $3000.00, the loan is at $13,000.00. Our child isn't worth anything, what's the collection action going to get the lender.
Hello,It appears that the lender would only be able to obtain a judgment against your son. If he accumulates assets in the future, the judgment holder can execute the judgment against him at that time.
Will this get our child in court some day, or will the assets just be taken without notice.
Hello,Your son would first be sued and a judgment entered prior to any assets being seized.
You say he'd be sued, would a judge would here this before a judgment is entered? Is it possible this lender, being the bankrupt American automaker, that can't sell new gas guzzling pickups, wouldn't go through all that trouble, and expense, and just leave it alone.
You say he'd be sued, would a judge would here this before a judgment is entered? yesIs it possible this lender, being the bankrupt American automaker, that can't sell new gas guzzling pickups, wouldn't go through all that trouble, and expense, and just leave it alone.yesPlease accept my answer at this time so that the site releases payment to me.
One last little tid bit, when our child was employed, he had the engine, and transmission removed for performance upgrades by a private party, he can't get them back, he doesn't have the money. The truck is sitting in the street, if reposessed when they see what's missing, could there be police involvment.
Hello,No.
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