Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

I'm the cosigner on son's car; he's filing ch 7

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • I'm the cosigner on son's car; he's filing ch 7

    My son is single with one dependent. He has $25K in cc debt and is way below median income. He wants to file BK ch 7. I have given him lots of financial help, including renting him a home at below market value and recently took out a loan for a car at my Credit Union for around $8,000. He is a co borrower on the loan, but I have been making the payments. The car is registered to both of us. We (I) have only made 3 payments on the car. Other than this his BK estate is negligible. Can anyone give me what the scenario will be with the car in bankruptcy? We obviously want to keep the car. Should I talk to the Credit Union about this? With my help he wants to file pro se, and we are just starting to educate ourselves.

  • #2
    Hi Dad, welcome to the Forum. How old is your son? You may have been making life far too easy for him, by 'helping him out', instead of letting him get educated in the School of Hard Knocks, and allowing him to 'grow up'. You might wish to review this thread about a 60+ year-old, that hasn't grown up yet either:

    http://www.bkforum.com/showthread.ph...r-payday-loans

    All that said, if the son files BK Ch7, and discharges his part of the car loan, YOU as co-signer will be held responsible.

    That is the very simple, short answer.

    How this actually plays out, depends on many different things: how is the car titled? Is it in his name, your name or both? If it is titled in both names, is it an 'AND' or an 'OR' title? Will the CU demand a Reaffirmation? Most do, if you want to remain in good standing with your CU. If you don't mind moving your banking business elsewhere, this can become a moot point.

    Is this a brand new car with all the bells and whistles, or is it a good used car, reliable for getting from Point A to Point B and back again?

    How is YOUR financial situation? Are you able to make payments on this car for five years--if a new car? If you do keep making the payments, are you going to have son pay you back, at least a little, now and again?

    I am sure there are other questions I missed, but I am confident that the members will jump in with their opinions.

    Good luck to you!
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

    Comment


    • #3
      Originally posted by Stumperino View Post
      My son is single with one dependent. He has $25K in cc debt and is way below median income. He wants to file BK ch 7. I have given him lots of financial help, including renting him a home at below market value and recently took out a loan for a car at my Credit Union for around $8,000. He is a co borrower on the loan, but I have been making the payments. The car is registered to both of us. We (I) have only made 3 payments on the car. Other than this his BK estate is negligible. Can anyone give me what the scenario will be with the car in bankruptcy? We obviously want to keep the car. Should I talk to the Credit Union about this? With my help he wants to file pro se, and we are just starting to educate ourselves.
      You have been too good to your son. As Cat said, he needs some growing up experience. Renting below the market will reflect on his bk, as well as YOU are paying for HIS car? In any event, nothing will happen to the car since you are cosigner and paying for it anyway, the car is secure. I'm sure you will just let him keep it. Since he is living off of you, why can he not at least pay the CC? 25K is not that much, considering he has it made with you. If he has no other assets the bk would go smooth but the Trustee will question the car and the low rent. Since you are a source of income (differential between market value of rent, and a free car), you will have to be listed as part of his income. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

      Comment


      • #4
        Hmmm. How to explain. I don't exactly cherish the fact that whenever my son is up against it he comes hat in hand to me. However, I also don't want to see my grandson having to live in abject poverty. My son (who has full custody) is very good with him and his mother is useless in terms of any financial or sensible rearing contributions. They lived in a rodent and insect infested one bedroom home for five years prior to my acquiring the "investment property" that I am renting him. My son is regularly trying to find a better job, but he gets no offers. Unemployment here is at 20%. As far as Being a co signer, I saw that I would be listed on the forms, but the income listing is a new one on me. Of course the arrangement is whenever my son is capable, he must start paying reasonable rent, take over the car payment and hopefully one day start paying me back. If he were out from under the $500 per month cc payments, this could start to happen. For the last 7 years, whenever life's inevitable emergencies arise (car repairs, groceries and diapers, etc) he had to turn to credit cards. He once had a job paying $28K per year and was offered higher limits. When he was laid off, and could only land part time work, his income/outstanding credit ratio dropped, and the banks responded with higher rates and lower limits. Now he pays minimum payments and gets nowhere against the principal. Now he has to come to me when the emergencies arise. I am OK financially, getting a decent pension, but obviously life would be grander if my wife and I could have more of our income for ourselves. The only reason I took on the car was because he got in a wreck and totaled his paid for one and he depends on the vehicle for his job. I thought it made sense to get a reliable one and not a beater. That didn't exactly work out, but that's another story. It is a 7 year old car and we probably have $100 equity at this point and it is worth maybe $7500. The car's title is me OR him. Right now hours are being cut at his job and he struggles to pay utilities, insurance and fuel expenses. Now I am wondering the ramifications of my assistance on the BK.

        Comment


        • #5
          OK, Dad. I entirely understand. I'm a Dad too. Our economy is not too swift. Seems Hope and Change did not go too well. If you were to change the Title to your own name, that would help in bk, but not for insurance reasons. Most insurance companies only insure the Titled owner.

          Face it that you are now involved. Has he filed yet? If he is paying $500 a month for his credit cards, here is what I would do: Give him the car payment, give him appropriate rent in your area, IF you can afford it, take up the CC payment. IF he does well, you will be stuck with the CC payments (IF YOU CAN PULL THAT OFF) but if he then goes badly, no amount of bankruptcy will fix him.

          This is just a thought from one Dad to another. If he fails under the no CC debt, then give it all back to him. Let him bk, and "HE'S ON HIS OWN". It's called tough love, Dad.

          Giving a helping hand is one thing. That is a hand up. However, just giving him relief, makes it a hand out. Hand outs become expected and abused.

          We currently live in tough times. The helping hand he needs is at the end of his arm. I've done this, and been here. 'Hub
          If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

          Comment


          • #6
            Not a bad suggestion, Cat's Hub, but boy does it irks me to pay those unscrupulous cc creditors. It burns me up that they raised rates to over 20% on somebody that is struggling. And I tell you I would never pay over 12% on any loan. My son's been hacking on that debt for over 7 years now and it doesn't seem to diminish. Having him free of those payments would allow me to raise the rent $150 and hand over the $170 car payment to him and I would have some of my disposable income back! That would be a better scenario for me. And yes, the reason he's on title and loan is his taking care of his own insurance.

            Comment


            • #7
              I can only say I just went through almost the identical situation with a daughter. I was the primary on the car loan - she was co-signer. She continued to pay for the car - there is and was no problem when she filed BK7. There is nothing on my credit report at all because I did not file.

              Have him file - keep paying for the car and you will be fine.

              Comment


              • #8
                Has he talked with any of the CC's company on what they would take if he paid the amount in full? Some credit card companies will take just the principle owed, but normally he has to be more than 3 months behind. I had some credit cards that I had not made a payment in over a year and the credit card companies cut the balanced owed in half, and they tried to work out a payment arrangement that was about 50 dollars a month instead of the 200 dollar a month on each card.

                Also has your son looked into going back to school to make him more marketable? Schools do offer grants and scholarships that would not have to be paid back. Basically free education.

                I know it is hard not to bail him out, but I agree that if you can swing the CC payments maybe he can get back on his feet. If that does not work then cut the ties and he BK's and starts over. I would check out the local colleges though and see what is out there. Also has he looked into some state assistance? They have tons of programs for single parents that could help out with food and necessities and that would cut the cost on what you are having to pay.
                Chapter 7 filed on 4/23/2010
                341 meeting on 5/28/2010
                Discharged on 8/19/2010

                Comment

                Unconfigured Ad Widget

                Collapse
                Working...
                X