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Cosigner declared bankruptcy

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stopthepain

Junior Member
What is the name of your state: Ohio and Florida

I'll try to keep this brief...
My older sister bought a car with. what was supposed to be, my younger sister as a cosigner. As is turns out, when the paperwork went through my younger sister was listed as the Primary, and my older sister (who the car was for) was listed as the cosigner. For some reason that never got fixed.
Anyway, my older sister is not paying on the car, her credit cards, etc and my younger sister is stuck with the car payments, insurance, etc. For some reason, my younger sister is allowing my older sister to keep the car, in hops that she (older sister) will get a job and be a bit more responsible with her finances.

Well, my older sister is unemployed and not really trying to find a job, while my yonger sister is getting calls from collections, credit card companys, etc. and I am begining to think backruptcy may be a good thing for my older sister.

My question is: What will happen to my younger sisters credit if my older declares bankrupcy? Can the court take the car even though my older sister is just a "cosigner", and leave my younger sister in an even bigger mess? (I BELIEVE my younger sisters name is on the title)

ALSO, my older sister has a log of student loans, am I correct in believing that she will still owe on them after bankruptcy?

The reason for "Florida and Ohio" is that my older sister now lives in Ohio (with the car) and my younger sister lives in Florida (with the title).

Thank you for any advice
 


HomeGuru

Senior Member
stopthepain said:
What is the name of your state: Ohio and Florida

I'll try to keep this brief...
My older sister bought a car with. what was supposed to be, my younger sister as a cosigner. As is turns out, when the paperwork went through my younger sister was listed as the Primary, and my older sister (who the car was for) was listed as the cosigner. For some reason that never got fixed.
Anyway, my older sister is not paying on the car, her credit cards, etc and my younger sister is stuck with the car payments, insurance, etc. For some reason, my younger sister is allowing my older sister to keep the car, in hops that she (older sister) will get a job and be a bit more responsible with her finances.

Well, my older sister is unemployed and not really trying to find a job, while my yonger sister is getting calls from collections, credit card companys, etc. and I am begining to think backruptcy may be a good thing for my older sister.

My question is: What will happen to my younger sisters credit if my older declares bankrupcy? Can the court take the car even though my older sister is just a "cosigner", and leave my younger sister in an even bigger mess? (I BELIEVE my younger sisters name is on the title)

ALSO, my older sister has a log of student loans, am I correct in believing that she will still owe on them after bankruptcy?

The reason for "Florida and Ohio" is that my older sister now lives in Ohio (with the car) and my younger sister lives in Florida (with the title).

Thank you for any advice
**A: oh brother.
 

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