Legal Question in Bankruptcy in California

Cosigned for a friend to get a car loan

I cosigned for a friend so she could get a car loan. I am filing personal bankruptcy & want to know if my filing will cause my friend any problems with her the loan. I am also concerned about my legal financial responsibility on her loan if she stops making payments. Will I be expected to make payments against her loan since I have filed bankruptcy? Lastly, if she should default on her car loan and I don't or can't make the monthly payments will that go against my credit rating?


Asked on 8/02/03, 2:07 am

1 Answer from Attorneys
Gary Fraley California Bankruptcy Attorneys

Re: Cosigned for a friend to get a car loan

Your filing bankruptcy should not affect your friend. It will have the effect of taking your name off her auto loan. If she later quits making payments, no one will expect you to pay AS LONG AS YOU LIST THE COMPANY in your bankruptcy. If she does not make payments, it will not hurt your credit any worse than the bankruptcy does, since your responsibility to pay ends with the bankruptcy.

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Answered on 8/03/03, 9:19 pm


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