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co-signer and bankruptcy

Hi my parents co-signed on my car. If they file bankrupcy how dose this affect my carloan?

Posted from: Saskatchewan

One Response to “co-signer and bankruptcy”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

As long as you keep your vehicle and continue to make the payments as originally contracted the the bankruptcy won’t have any impact on your parents.

However, if you allow the vehicle to go back (i.e. be seized)prior to filing the bankruptcy then the bankruptcy will clear you from the debt, but your parents will still be 100% responsible that the car loan is paid in full.