Bankruptcy and paid off car loan

Anonymous — Fri, 11 Sep 2009 21:31:30 GMT

Hello all, I have a question and I'm hoping to get some answers to. My parents are thinking about filing for bk (either 7 or 13), I'm unsure at this point. Anyways, my mother co-signed my first vehicle back in the year 2000 and have since been paid off by me. I still have the vehicle in good condition, and I have no intentions on selling it. My question is: when my parents do file for bk, will the judge use the vehicle as asset although the car really belongs to me and not my mother? I have the title in hand with my name along with my mothers name on it. I know, I should've removed my mothers name after I paid it off in 2006, but never did. Now I'm really worried that they will take the only thing that I have posession of.

I have a 2000 honda civic ex, KBB at $6000. I planned on going to my local DMV to remove my mother from the title, but it's probably too late.

Re: Bankruptcy and paid off car loan

kittygal — Sat, 12 Sep 2009 00:40:56 GMT

I believe that your holding title means you own the car in your name. Your mother was a co-signer to the loan and that only means that if you defaulted on the loan the lender could attempt to collect from your mother for any remainder due.

I don't think it can be included in any BK that is filed by your parents,

You should probably take care of removing her name anyway since she has no legal ownership to the car.

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Bankruptcy and paid off car loan

Re: Bankruptcy and paid off car loan