Legal Question in Bankruptcy in California

Re: Bankruptcy and Cosigner

Do you mean that AG has one loan for more than one vehicle? That shouldn't be a problem as long as you intend to retain the vehicles and continue to pay the loans. You need to be sure you can exempt any equity in the vehicles or the Cht. 7 Trustee could sell them to help pay creditors, in which case your lender may go after your daughter if there is a deficiency. You also need to be sure you are not on title to your daughter's car, as you will have to include it in your bankruptcy if you are. Finally, if you don't plan to keep the cars, you need to look at filing a chapter 13 rather than a 7 so you can get what is called a "codebtor stay" which would prevent, at least until you confirm a plan, AG from suing your daughter. You have some complicated issues here, so I hope you are using an attorney to help you file. This is really beyond what a Bankruptcy Petition Preparer can deal with properly.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Re: Bankruptcy and Cosigner

Do you mean that AG has one loan for more than one vehicle? That shouldn't be a problem as long as you intend to retain the vehicles and continue to pay the loans. You need to be sure you can exempt any equity in the vehicles or the Cht. 7 Trustee could sell them to help pay creditors, in which case your lender may go after your daughter if there is a deficiency. You also need to be sure you are not on title to your daughter's car, as you will have to include it in your bankruptcy if you are. Finally, if you don't plan to keep the cars, you need to look at filing a chapter 13 rather than a 7 so you can get what is called a "codebtor stay" which would prevent, at least until you confirm a plan, AG from suing your daughter. You have some complicated issues here, so I hope you are using an attorney to help you file. This is really beyond what a Bankruptcy Petition Preparer can deal with properly.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

Re: Bankruptcy and Cosigner

It depends. If you keep the vehicles, then no. If you release the vehciles, then yes.