Co-debtor on a car question...

[Oldgeezer]

What is the name of your state? Colorado
My wife and I are self-filing a joint Chap 7. Our son bought a car for me to use and is the only one paying for it. I'm 69, disabled, on Soc Sec, wife works min wage job and we're way, way under med HH inc for the state with under 10k of assets and with 30k of credit card debt. When the purchase was done, my son asked to put me jointly on the title of the car so I could insure it in my name but to leave me off the financing. The dealer rep slipped me onto the financing anyway and when all the papers were signed, assuming that everyone understood what was to happen, we didn't read the papers and I found out that I had co-signed the papers when we pulled credit reports for the Chap 7 and found me obligated for the car. Earlier, when it was clear that I would need to file Chap 7, my son had me removed from the title and a new title issued, not knowing at that point that I had unintentionally co-signed. When we discovered that, my son paid off the note so there would be no debt and took the car. There's a section where I must list any property involved in a financial insturment, which I had co-signed, that had been paid off within the year prior to filing Chap 7. My question: Should I acknowledge that there was a such a co-debtor situation and ask for an exception, since I was not supposed to be financially responsible for the loan in the first place, or should I just not acknowledge it? The market value of the car in question is roughly $5500.00 and we have another vehicle, a stick shift Nissan P/U worth about $2500.00 which I would want to make an exception, since my wife drives it to work most often. Can we exempt more than one car, especially since we both must have transportation and I must have an automatic due to my disabilities which I use to get to various doctors several times a month, and since the allowable exemption is double since I'm disabled?

[Ladynred]

Should I acknowledge that there was a such a co-debtor situation and ask for an exception, since I was not supposed to be financially responsible for the loan in the first place, or should I just not acknowledge it?

It would not be a good idea to try to hide anything. You're better off being completely honest and not taking the chance that you could be 'found out' by the Trustee.

If you were just the co-signer and your son was the primary on the loan, you would have no liability for the vehicle unless he defaulted on the payments anyway. How long ago did this transaction take place ?? At best, your interest in the asset would only be 50% anyway with both of you on the car title. Get a trade-in value on the vehicle (not Kelly Blue Book) and use that number on the forms.

The CO exemption is 6K for motor vehicle, it does not specify how many vehicles. Exempt your wife's vehicle and then, if necessary, use the remainder for 'your' vehicle. All of this moving your name off the title and paying off the vehicle could still raise a red flag to a Trustee so be prepared to explain what the reasons were for the shift.