Legal Question in Bankruptcy in Florida

I was primary borrower on a car loan that was discharged Jan 2011 under Chapter 7. I did not reaffirm but have been making the payments. The co-borrower is about to file his own Chapter 7 and will not reaffirm. What happens to the car? Who owns it? Will I be able to get clear title after all payments are made? I don't want to continue making voluntary payments on a car that will be repossessed when his case is complete. But it is convenient to keep the car. The loan is upside down.


Asked on 2/18/11, 10:56 am

2 Answer from Attorneys
Sanford M. Martin Sanford M. Martin, P.A.

My basic advice is:

1. Contact the lender of the vehicle loan; the lender will receive a notice of the co-borrower's bankruptcy filing, so don't wait too long to contact the lender;

2. Inform lender that you have been making payments on the auto and that the co-borrower intends to file Chap. 7 bankruptcy, and that you wish to reaffirm the debt in only your name;

3. You and the lender can renegotiate the loan, including the interest rate, number of payments, and even principal amount of the loan;

4. Usually the lender is pleased to reaffirm the loan, even making the terms more acceptable, especially if, as you state, the "loan is upside down."

5. Realize that, although you did not formally reaffirm the debt after your filing, by continuing to make payments, you in fact did "reaffirm" the debt. But, by reaffirming the debt in only your name, your credit rating will benefit and the vehicle will be only in your name.

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Answered on 2/18/11, 5:36 pm


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