PLEASE HELP!! BK7 Auto loan question

Date: Wed, 07/01/2009 - 15:43
Submitted by on Wed, 07/01/2009 - 15:43
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I am filing BK7 in Indiana, I bought my first "NEW" car in 2005 with the help of a co-buyer who is my grandfather. The car has had major problems since. I had to have a new engine put in it in April of this year, which cost $3500 and now its in the shop again needing a new oil pan costing another $380. The car only has a little over 40,000 miles on it. I do not want to keep this piece of SH*T car plus now I am losing my job at the end of this month and have already seen the BK lawyer. My questions are:
1.If I file BK on the car what responsibility will my gpa have? He is 85 now and his health is getting worse by the day. I do not want to burden him with this, but I cannot afford to keep the car.

2. My BK court uses nada to value the car, would they take into consideration all the trouble I have had with it to assess it's value?
The NADA value on my car ranges from $4,650 $5,500 $6,200 $7,700* now in my eyes since I had an accident with it 2 weeks after owning it and the front bumper had to be replaced, along with the engine trouble I have had the car would be worth the lowest value. My payoff quote is $6700 which is about $2000 more than what it is worth.

3. What will happen to my/my grandfather because I am currently one month behind in payments and do not want to pay anymore on this car if I don't have to?

Thanks in advance for any and all help you can give me!


I took my car to a local dealer and they were able to give me a trade in value good for 30 day's...My attorney was pleased with this. And SoapLady is right the Co- signer is liable. That is the whole reason for a Co- signer..... Are you using a Attorney??? He should be able to assist you. Godd Luck to you and your Grandpa..


Submitted by on Wed, 07/01/2009 - 16:57

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thanks for your help, I am trying to convince my granpa we should sell the car, but not sure how that will affect the BK, and he is very reluctant to do anything with it, be it-selling it, including it in the bk etc. and yes I am using an attorney, but he said I needed to talk to my gpa first, so I guess when I go in to talk to my attorney on friday I will see what my options are. Thanks again!


Submitted by on Wed, 07/01/2009 - 17:03

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I filed Chapter 7 back in 2005 and my mom was a co-signer on the car. Basically what I did was put her down as a debitor when I filed bankruptcy. She was not responsible for the remainder of the balance that was due after they sold the car at a auction. There is no item on her credit report that shows her ever being a co-signer on the loan with me. I'm not sure if anyone has ever had any luck with that, but that's what happened when I filed bankruptcy. Good luck with everything.


Submitted by ChocolateBeauty on Sun, 07/05/2009 - 01:19

ChocolateBeauty

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