Legal Question in Bankruptcy in Maryland

Re: Repossession after bankruptcy

Without knowing the capacity in which you co-signed, no definitive answer can be provided.

Did you sign as a guarantor of payment or did you sign as a payor in default? The specific terms of the co-signment agreement is at issue. Moreover, you did not indicate the type of bankruptcy filed by the primary debtor. Based on your statement, I assume a Chapter 7, in which case the debt has been dissolved against the assets of the bankrupt estate and it is not likely that a potential course of action lies. As a co-signor, you should have received notices of demand for payment long before the bankruptcy was filed (assumming as is usually the case that a vehicle loan went unpaid).

Depending on various factors, if you would like to assume payments on the asset and it has not otherwise been liquidated in satisfaction of the debts held through the estate (i.e., a Chapter 13), you must act quickly.

Contact me to file a notice of interest in the asset, and to assume payments, where the asset is available for such with creditors having an interest. In this case, a creditor having an interest may welcome an offer for agreement but this needs to be done properly. Such an action, depending on the type of bankruptcy filed, may also be of benefit to the person who filed the petition for bankruptcy.

G. Joseph Holthaus III

(410) 799-9002