Legal Question in Bankruptcy in California

Re: Bankruptcy - What happens to car loan

You would need to consult with a bankruptcy attorney as there is a lot of information that needs to be examined regarding all debts and assets that have to be collected on your boyfriend before a recommendation to file for bankruptcy can be given. And yes, usually you can continue making payments on a car loan or by reaffirming the debt.

Larry L. Doan

Re: Bankruptcy - What happens to car loan

I am very sorry that you are going through all of this.

If you continue to make the payments, he will own the car, not you. If you really want to buy a car, I suggest you purchase one and do so in your own name.

He will probably be a good candidate to file bankruptcy, and he should consult with a bankruptcy attorney. It is a bit tricky to do a case when the client is in jail, but I have done it, and it is possible to do.

Re: Bankruptcy - What happens to car loan

You'd have to negotiate a transfer of the loan to yourself if you wanted to pay off and keep the car, or a new loan to pay off the lender and put the car in your name--it may be easier to get a different car.

Regarding bankruptcy, it may be a good idea in his situation--the bankruptcy can go through even if he's incarcerated. It will require some extra coordination with the trustee assigned to the case, but it can be done. It would be worth a bankruptcy attorney's review of his circumstances to discuss the pros and cons of filing a bankruptcy case.