Will bankruptcy help me if I co signed for my sister for a car and she stopped paying? - Bankruptcy Law Questions and Answers- LawQA.com

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Will bankruptcy help me if I co signed for my sister for a car and she stopped paying?

I co-signed a car for my sister and she stopped paying. Will bankruptcy help me? I am considering using a law corporation for my bankruptcy but I am not sure if bankruptcy is the answer.

Answer By Dede J. Agrava
Law Office of Dede J. Agrava
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Yes, If you qualify and file for bankruptcy you can include debt that you co-signed for. Then if you receive a discharge you would no longer be responsible for the debt but your sister still would be.

Answer Applies to: California
Replied: 1/26/2012

Answer By David VanDyke
Bird & VanDyke, Inc.
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When you co-sign for a car loan you are responsible for the loan just as if it was your car loan. The only difference is that both you and your sister are responsible for the debt. If the car is repo'd the lender that holds the loan will usually wholesale it through a dealer type auction and get whatever they can for it. The amount they receive at the auction will be subtracted from the full amount of the loan and the bank will send you a bill for the difference. This is known as the deficiency. The good news is that this deficiency is dischargeable in bankruptcy.

Answer Applies to: California
Replied: 1/26/2012

Answer By J.M. Cook

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Yes. Bankruptcy would discharge the liability on the loan. Use a competent bankruptcy attorney to consult and file.

Answer Applies to: North Carolina
Replied: 1/26/2012

Answer By Bill Zurinskas
Bankruptcy Law Center
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You can discharge a co-signed obligation in your bankruptcy.

Answer Applies to: Colorado
Replied: 1/26/2012

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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If you file a bankruptcy, then you are no longer responsible for the debt but she will remain liable.

Answer Applies to: New York
Replied: 1/26/2012

Ashman Law Office
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First of all, unless you hire a lawyer, do NOT file. Let me stress that. Pro se bankruptcies usually are disasters. Properly done, if you qualify, bankruptcy may help you. See a lawyer to determine if you should and then to handle it.

Answer Applies to: Georgia
Replied: 1/25/2012

Answer By Louis Haskell
Law Office of Louis S. Haskell
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Yes. You can discharge a loaned you cosigned. The bank will still be able to sue your sister and repossess the car, but you will be off the hook.

Answer Applies to: Massachusetts
Replied: 1/25/2012

Law Office of John C. Farrell, Jr.
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I would suggest seeking the advice of a bankruptcy attorney to see if you even qualify for bankruptcy. You can also seek out the debt forgiveness or settlement avenues as as means of resolving this account.

Answer Applies to: Massachusetts
Replied: 1/25/2012

Grace Law Offices of John F Geraghty Jr.
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It would not be the answer unless you cannot get the creditor to pursue your sister.

Answer Applies to: Georgia
Replied: 1/25/2012

Law Offices of Robert P. Taylor
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A Chapter 7 should wipe out your liability if you qualify.

Answer Applies to: California
Replied: 1/25/2012

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