Legal Question in Bankruptcy in California

Co-Signer

What happens to the co-signer of a car loan if the primary borrower files for BK?


Asked on 10/29/03, 6:42 pm

4 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Co-Signer

Absolutely nothing. They are still liable for the payments due on the vehicle.

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Answered on 10/29/03, 6:45 pm
Alvin Tenner Law Office of Alvin G. Tenner

Re: Co-Signer

The co-signer is liable. Get the car.

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Answered on 10/29/03, 6:50 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Co-Signer

If the debtor continues to pay on the car, usually the lender won't pursue the co-signer for anything. If, however, the debtor wants to give the car back or it is repossessed, the co-signer will be liable for the deficiency after the lender re-sells the car. If the paperwork is done right, the debtor will not be liable for anything except the co-signer's anger.

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Answered on 10/29/03, 7:55 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Co-Signer

Well, as you've seen from the previous posts, the co-signer will get upset, because his/her liability is unaffected by the bankruptcy. Does the debtor intend to keep the car and keep the payments current, or give it up?

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Answered on 10/29/03, 8:34 pm


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