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 car loan and its cosigner. Here's what you need to know.
If you're considering filing for bankruptcy, you may be wondering what will happen to your car loan and its cosigner. Here's what you need to know.
When you file for bankruptcy, your car loan will not be discharged. This means that you'll still be responsible for repaying the loan, even though the bankruptcy will wipe out your other debts. However, if you can't afford to keep making the payments, you may be able to surrender the vehicle.
If you do decide to surrender the vehicle, the lender will sell it and use the proceeds to pay off the loan. If there's any money left over, it will go to the cosigner.
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