Co-ownership (unmarried) of assets

[In Debt]

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I'm from Massachusetts and want to know

what happens when I return my new car to the bank because I lost my job and cannot afford to pay for the car? Will I be responsible for the balance I owe on the car?

I also co-own a boat with a friend of mine. Can the boat be seized to pay off the balance on my car loan or is it exempt because I am not the sole owner? What can I do to solve these problems?

[HRx]

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I'm from Massachusetts and want to know

what happens when I return my new car to the bank because I lost my job and cannot afford to pay for the car? Will I be responsible for the balance I owe on the car?

I also co-own a boat with a friend of mine. Can the boat be seized to pay off the balance on my car loan or is it exempt because I am not the sole owner? What can I do to solve these problems?

The bank will make an attempt to collect any negative equity from your voluntary auto repo. If you're financing the boat, and are current with the payments, nothing will happen. However, the rules will slightly change if you file for bankruptcy.

If your financial situation is only causing you to do a voluntary auto repo, and not have to file for BK, that wont be a problem--with the exception of the fact that the lender may take legal action to have any negative equity garnished from you, once you become re-employed. But this action, is typically based on the amount of negative equity owed. If it's like than $5,000 you can typically just continue defaulting on the debt until the lender writes it and until it "falls" off your credit report. But I must forewarn you, this method of dealing with bad debts can come back to haunt you, and it does work well with many others too.

Good Luck!