Co-signer and ch 7 case

[ffpmme]

So I have finished everything have all my paperwork ready, filled every box I should, dotted all my eyes, crossed all my T's and ready to go.

I was going to surrender my car and get a new one ($2K used) and ride that out for a year or 2. Then driving down the freeway today it hit me. My wife is a co-signer on the car I am going to surrender.

So hear is my question, If I surrender the car, turn it in to fin company. My wife who is a co-signer then will be on the hook for the deficient balance after the sale. Is that right?

Because if so then my week just went bad.

Thanks!!

[Floridagail]

Yes the Co signer is then responsible for the loan. Unless she files bankruptcy too.

[ffpmme]

Yes the Co signer is then responsible for the loan. Unless she files bankruptcy too.

That is what I thought. She filed about 8 years ago and she can file again in October. Not sure I want her to have to file again.

[AngelinaCat]

I think you need to do your best to do a ride through on that car, otherwise your life is probably going to be very *toasty*.

Have you discussed any of your impending BK plans with her? If not, you probably ought to.

[ffpmme]

Oh yea, she knows all about it. I was happy that I could walk away and start over with a extra 400 in the back from the car payment. And the lighting bolt of this realization was a real bummer!!! But I am glad I figured it out before it bit her in the but!

[ValleYum]

Don't reaffirm the vehicle - just do a retain and pay aka: drive through. You will get TONS of post BK offers to buy a car, maybe just trade it in then...

[ffpmme]

Don't reaffirm the vehicle - just do a retain and pay aka: drive through. You will get TONS of post BK offers to buy a car, maybe just trade it in then...

So with the statement of intent choose other and just list it as retain and pay?

[justbroke]

You can list "Retain and Pay" in the Other box, but you could get pushback from the lender. Who is your lender? (I hope it's not Ford Motor Credit. Ford seems to hate ride-throughs.)

[ffpmme]

It is a local mid sized dealship finance company. I have been on time with all payments for 2 years. I had to use them because I had a repo that they are coming after me for now that is sending me into ch 7 to stop a 12K wage garnishment.

I am hoping by re-affirming it, I may have leverage to lower the interest rate, or maybe the judge at the re-affirmation hearing will not allow it, or maybe I will find a cheap car between now and then and I will surrender it.

We will see!