Legal Question in Bankruptcy in Michigan

In 2008 my fiance cosigned on a motorcycle loan for a friend of his. This friend stopped paying on the bike without letting my fiance know. When the collection agency called my fiance and his friend went to a lawyer to get my fiance off of the loan. The lawyer stopped calling back and now is filing bankruptcy papers for his friend. We recieved the notice of bankruptcy in the mail yesterday. Will we be responsible for the balance of the loan if the other man files against it? Also, we do not even have possession of the bike but could still be required to pay off the balance? What options or recourses do we have in this matter?


Asked on 7/27/10, 4:51 pm

1 Answer from Attorneys
Jesse Sweeney Sweeney Law Offices, P.L.L.C.

Yes you will be liable for the difference between whatever the creditor sells the bike for and whatever is owed. Your only recourse would be to file suit against the co-debtor, but since the co-debtor has filed a bankruptcy, you either must pay the balance owed or file your own bankruptcy case.

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Answered on 8/01/10, 5:10 pm


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