Legal Question in Bankruptcy in Ohio

car loan

I purchased a new vehicle 18 months ago. The loan, because of my credit history, is in my dads name, with me as a co-signer so that it could be registered in my name.

We are considering filing chapter 13 due to an overwhelming amount of medical bills.

If I want to keep my car, does it have to go into the bankruptcy, or can I still make the payments on my own,(I owe more on the car than what it books for),also, how will this effect my dads credit?

your timely response is greatly appreciated.

thank you


Asked on 6/21/02, 9:57 am

1 Answer from Attorneys
David Weilbacher, Esq. Attorney at Law

Re: car loan

If you are facing substantial medical bills, and the vehicle is your only asset, you may want to consider making a chapter 7 filing, so as to obtain a complete discharge of the debts. If your interest in the vehicle is less than $1000.00 it can be retained, however you would need to reaffirm with the lender. It may even be possible to reduce your obligation to the current market value of the vehicle, but that would require the refinancing the vehicle at a punitively high interest rate. Many times the high interest rate offsets any advantage to refinancing the vehicle. Bankruptcy is a complicated area of law; I suggest you seek legal assistance. If I can be of any assistance, please contact me.

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Answered on 6/21/02, 11:43 am


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