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Co-signer who has filed bankruptcy

I co-signed a car lease for our son. Due to health and other unforeseen circumstances I had to declare bankruptcy and the outstanding balance on the car lease is listed on the bankruptcy. Can the lease company also try and collect from our son? Will our son have to declare bankruptcy as well for the same care lease balance?

Posted from: British Columbia

One Response to “Co-signer who has filed bankruptcy”

A licensed trustee said...

If you co-signed for your son, that suggests it is his lease (and car). As long as he continues to make the lease payments he shoudl be able to keep the car. If he defaults on the payments then he’ll lose the car and the leasing company has the right to “come after him” for the rest of their money. Your bankruptcy protects you – it does not protect your son.