Legal Question in Bankruptcy in Iowa

Bankruptcy or other choices

My son whom is 27 took a loan for a vehicle, a friend of his was to make the payments as it was going to be her vehicle. She is 19, has no drivers licence, she was driving, wrecked it before she had insurance and a friend who was with her took the blame. My son now has to refinance the monies from another bank and she is not willing to sign the papers and let him be the co-signer. Is bankrupsy the best way to go, if not what can he do. I am desperate to help him. He has excellent credit and now with Bankrupsy his credit will be bad for 10 years. Help!


Asked on 4/22/02, 8:40 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Bankruptcy or other choices

Short answer -- your son could take bankruptcy but perhaps he should do nothing.

I don't think he should EVER take out a loan for this girl or co-sign. That would be ridiculous. In terms of the damage on the vehicle I assume it was totaled. Maybe your son can wait until he receives a letter threatening a lawsuit. Once an attorney gets involved he could probably negotiate his way out of it by paying 50% of the amount of the vehicle. If this car debt is your son's only real debt then I think it would be better for his long term credit to have one bad mark against him for the past due car loan. He should not go refinance this bad debt with another loan. In my opinion just let the first loan go into default. Then in 2 to 3 years he can make an offer to settle the debt like I have stated above. If he has other substantial debts in addition to the car problem then bankruptcy would be a good option. Please feel free to call me to personally discuss this situation. ph. (800) 303-0720

Read more
Answered on 4/22/02, 10:45 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Iowa