bankruptcy
I have co-signed a car loan for my son as he had bad credit. He has since gone down and in over his head with debt. He has a stable job but not able to keep up with all his payments. He now is considering bankruptcy and I am afraid that I will end up having to pay for his car loan since I am the co-signer. Am I responsible?
Posted from: Ontario
Yes, by co-signing for his car loan you are responsible for the vehicle, but this may not be a problem depending on what your son with the vehicle.
If your son elects to retain his vehicle, despite the bankruptcy, this will mean that nothing changes. He will continue to make the payments and yes you are a cosigner, but if he continues with these payments there is no change to what is happening.
The only time you need to be nervous is if the vehicle is repossessed or returned to the lender. This is when you will be looked to for payment.