Legal Question in Bankruptcy in Kentucky

It depends on what kind of bankruptcy the person is filing and what they intend to do with the car in the bankruptcy. If it is a Chapter 7 and they are surrendering the car (as opposed to reaffirming the debt and continuing to make payments), then you will be fully liable for the debt on the car. If they are filing a Chapter 7 and do reaffirm the debt (keep their liability on the loan and keep paying) then there should be little or no impact on you.

If they are filing a Chapter 13 and keeping the car, they will pay for the car through their Chapter 13 plan and there is a limited, but helpful co-signor's protection built into Chapter 13. Again, though, if they surrender car, ultimately you will be responsible for the debt.

So, you should ask them what chapter they are filing and what they plan to do with the car. If they are going to surrender it, you should contact the lender and see if you can work out getting title to the car that you are going to be paying for so that you might sell it and limit your losses. Or, you may also be a candidate for bankruptcy protection if this burden makes it impossible for you to keep up with all your other debts/bills.