Two cosigned vehicles that need to be included in bankruptcy, how?

[jbierce]

I am planing on filing Chapter 7 and am making payments on a vehicle in which I had someone else cosign to get me a better rate. I want this vehicle to be included in the bankruptcy and taken away so it's off of my plate. A couple years after I made that purchase I helped a friend out by cosigning on their vehicle so that they could get a better rate. Now I want both vehicles to be included in the bankruptcy with the person that cosigned for me, and the person who I cosigned for, to be left alone. Is this possible, and if so, what do I need to do to make it happen?

[keepmine]

Not possible. The bk discharges your obligation to pay but, the cosigner is left on the hook and is responsible for the auto loans.

[woeisme]

If you continue to make payments on the vehicle that you have, then your co-signer shouldn't be impacted. If you "want it off your plate" then the finance company can come after the co-signer for the balance of the loan. You can have this debt discharged in CH 7, but the co-signer would still be on the hook for the balance unless you have equity in the car (you owe less on it than it is worth). In that case, you could sell the vehicle, pay the balance of the loan, and then the co-signer would be free and clear.

On the vehicle you are a co-signer on, you could also have your debt/responsibility discharged in CH 7. If the person who is making payments on the vehicle continues to make payments, they shouldn't have a problem, although it is possible that their finance company may want to adjust their interest rates now that there is no longer a co-signer guarenteeing the loan if they default. It's possible that the finance company won't bother though as long as this person has been making their payments on time and has built up a good credit history with them.