Will the vehicle be repossessed if I file?

I am going to file for bankruptcy but I have a concern. I co-signed for a family members vehicle 3 years ago and the vehicle is current. Will my bankruptcy hurt their credit or can their vehicle be repossessed?

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Answered By: Klinger Law Center

Your bankruptcy should not effect their credit, and what happens to the car depends on if they continue making payments or not. As a co-signer you may be required to "reaffirm" the debt. In the absence of a reaffirmation agreement, the auto lender may repossess the car, even if payments are current. There is also the option of redemption. To get advice particular to your situation you should consult with a bankruptcy attorney in person. Information provided over the internet typically addresses broad application of the law, not the particular application to your situation, as much more information needs to be provided to the attorney before they can give you complete legal advise.

Answer Applies to: California
Replied: 8/20/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Halpern Law Offices

Your vehicle should not be repossessed. Call me for more information.

Answer Applies to: California
Replied: 8/19/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Ariano & Reppucci

If you file bankruptcy your car will not be repossessed. To keep your vehicle in Chapter 7, you have to be current or be able to become current right away, and your vehicle must be below the exemption amount. In Arizona an individual filer gets a one car exemption up to $5,000 in equity. Equity is determined by the value of the vehicle minus what is owed on it. Please contact us if you wish to discuss further.

Answer Applies to: Arizona
Replied: 8/19/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Diefer Law Group, P.C.

No, it won't affect their credit and the vehicle will not be repossessed.

Answer Applies to: California
Replied: 8/19/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.