• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Car Loan Help

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

T

tnp

Guest
What is the name of your state? TX
A relative of mine which I cosigned a car loan for is seriously considering BK. What is the best strategy for both me and her. Should I pay off the car and transfer the title solely to her name? Or should we continue making the monthly payment. If I pay off the car and transfer the title to her name, can the court force her to sell the car to repay other debts. Any other considerations should I think about? Thanks for helping the new guy.
 


M

MikeyButters

Guest
Texas

There are a few things you can do. You could pay the car off. In texas if you file BK you could keep the car <see texas exemptions> http://www.thebankruptcysite.com/exemptions/texas.htm
or you can continue to make payments and keep the car. Usually if you continue to make payments on something you can keep it from being taken during a BK. The car loan-er would rather you continue making payments anyhow, good for both parties. Sometimes your loan agency will want you to sign a reaffirmation agreement if you want to keep the property, this is a pretty touchy subject. When you sign this you are reaffirming your dept to them and this will continue past any BK judgements. The best possible senario would be to continue making your payments (on time) and include the dept in your bk, just in case you cannot make payments later. But in your case im guessing this is not an option because you are the cosigner. Read this about reaffirmation http://www.flmb.uscourts.gov/ReaffirmationGuide.PDF

Hope this helps
Mikey
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top