What Happens to the Co-Signer of a Car Loan in Bankruptcy?
If you're considering bankruptcy, you may be wondering what will happen to your co-signer on your car loan. Here's what you need to know.
When you file for bankruptcy, your co-signer is not automatically relieved of their obligation on the loan. However, they may be able to file a motion with the court to have their name removed from the loan.
If your co-signer is still on the hook for the loan, and you default on the payments, their credit will be affected just as yours would be. This can make it difficult for them to get approved for future loans or lines of credit.
If you're considering bankruptcy, it's important to talk to your co-signer about their options and what they're comfortable with before making any decisions.
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