Legal Question in Bankruptcy in California

You are still obligated on the car loan. However, because your friend was the guarantor, the lender might accelerate the loan if the original loan documents permits that. Read both sides of the original documents for more guidance on what could be done if a bankruptcy is filed.

Although the answer to this question is actually quite complex, in the final analysis, you should continue to make payments as usual. If the creditor accepts a payment from you, then you should consider the contract to be in full force and effect as usual, and the bankruptcy filing should not show up on your credit report. If, however, your payments are returned to you (which is rare, but possible), then your credit report could possibly be affected and the car could be repossessed.