Legal Question in Credit and Debt Law in Virginia

What is the Law concerning a codebtor filing bankruptcy?

I am the debtor on a car loan and my father is the codebtor who filed bankruptcy. Does the creditor have permission to continue communication with me, the debtor, concerning my account and payments? My father filed bankruptcy and his lawyer sent a notice to my creditor stating that I have full responsibility. My creditor thereafter discontinued any communication with me what so ever. My car has been reposseessed last night without notice or any communication as to make a payment arrangement. I have not been contacted what so ever.


Asked on 2/01/00, 11:23 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: What is the Law concerning a codebtor filing bankruptcy?

If this was a Chapter 7, the creditor can communicate with you. If it was a 13, it can't demand payment, but it also can't repo the car w/o court approval. The creditor has no obligation to communicate with you; rather, you have the obligation to make the payments whether you are contacted or not. Either you make the payments or you don't, and if you don't, you lose the car. You may be able to get the car back if you bring it current, and certainly if you pay it off. You may also be able to get it back by filing Chapter 13 bankruptcy yourself.

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Answered on 2/01/00, 6:24 pm


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