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Pro Se bankruptcy question

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Peaches1977

Junior Member
State of Florida . Can a person in ch 7 bankruptcy file a redemption if they have a cosigner on their car ? I am upside down on my car loan and I'm not sure if I can file it .will the cosigner still be liable for remaining balance of car loan?
 
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latigo

Senior Member
State of Florida . Can a person in ch 7 bankruptcy file a redemption if they have a cosigner on their car ? I am upside down on my car loan and I'm not sure if I can file it .will the cosigner still be liable for remaining balance of car loan?
Yes!

Nothing that occurs in your bankruptcy case will have an effect on the creditor/debtor relationship between any of your secured or unsecured creditors and a co-obligor. In other words, the co-signer on the auto loan would in no way benefit if you were permitted to redeem the car at an adjusted value.

But suppose that you were allowed to redeem. How would you raise the moola to pay an adjusted value. It has to be in cash.

If you were in a 13, you could do a "cramdown" and avoid the need to come up with the cash. Plus a lot more. But again that would not benefit the co-signer. That is why bankers like them. (Not enough to buy them lunch, however.)

But I have to question that acting without an experienced bankruptcy lawyer you have the wherewithal to do a redemption. Ask 50 lawyers in the l9th or any watering hole where they generally gather and you might find one that's heard about it. Seriously! It is a very specialized branch of law. Me? I get nervous just driving past the federal court building. Very solemn places.
 

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