Legal Question in Bankruptcy in Indiana

Bankruptcy Issue

I am considering filing bankruptcy and my mom is the co-signer on my car loan. I wanted to include my car loan in the bankruptcy. How would this affect her?

Thank you,

Tim Harrison


Asked on 4/17/01, 9:15 pm

1 Answer from Attorneys
Dorene Philpot Philpot Law Office

Re: Bankruptcy Issue

If you seek to get the car loan discharged in bankruptcy, your mother will be on the hook for it. Your bankruptcy relieves your duty to the bank, but it does not relieve her duty. She would either have to pay the loan or file for bankruptcy protection herself.

Sorry. That's probably not what you wanted to hear....

If you reaffirm on the debt, then that means you agree to repay the loan per the original terms, and you can keep the car -- and your mom won't be hassled by the bank.

Hope this helps!

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Answered on 6/13/01, 7:48 am


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