Legal Question in Bankruptcy in California

co-signed loans

My mom cosigned my car but I'm the one who's paying for the car every month. Now, my mom is planning to file bankruptcy due insufficient wage to cover all her bills. My question is, when she files for bankruptcy, can I keep the car since I'm the one who's paying for it every month????


Asked on 11/16/01, 1:41 am

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: co-signed loans

Thanks for your posting. The simple answer to your question is "YES".

Why? Because you stated your mom only co-signed on the loan. That makes you the primary responsibility for the loan (and the vehicle) and if your Mom goes bankrupt, it just eliminates HER liability for the vehicle, not yours.

There is one warning, however ... you must keep the payments current. If you are behind on the payments, that gives the lender the right to repossess the vehicle, and take it away from you due to your default, regardless of what your mother does with her bankruptcy.

Thanks, and if you have any further questions, please call me at 1-877-568-2977 or just email me.

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Answered on 11/16/01, 2:45 am


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