Legal Question in Bankruptcy in Maryland

Primary Signer on a car loan's rights

My wife took out a loan for a friend 6 months ago to purchase a vehicle ( due to a prior repossession on his part and for child custody problems). She is the primary and he is the co-signer on the loan, however, the co-signer has possession of the vehicle. The co-signer is now declaring Chapter 13 which will leave my wife responsible for the remainder of the loan balance once the bankruptcy is discharged. My questions: 1) Can she take possession of the vhicle? If so, when? 2) Can she have the vehicle voluntarily repossed without his consent? 3) What other legal options does she have?


Asked on 6/11/02, 10:24 am

1 Answer from Attorneys
Joseph Trevino Law Offices of Joseph A. Trevino

Re: Primary Signer on a car loan's rights

I assume the "owner", the person with the car, is going to surrender the collateral to the bank, leaving your wife with an unsecured debt. She can reaffirm directly with the bank, and take over the car. Chances are, the market value on the car is lower than the loan balance so I don't see any advantage in taking over. Can she discharge in a simple ch 7? Shouldn't the bank be looking to her to redeem the car, since she is the primary?Is her credit damaged because of the what I assume is arrears or deliquency in the payments? Call for more information.

(1800-924-6217, in MD or 301-441-3131. Good luck

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Answered on 6/11/02, 1:52 pm


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