Legal Question in Bankruptcy in Virginia

I am a auto co-signer for my son. He had lost his job do to enconomic conditions. He was unable to find employment and work out anything with the lender. They have repocessed the vehicle and auction it off. They are calling daily to collect the difference. I was unable to assist him since my career filed has also suffered a slow down. What are our options?


Asked on 1/10/10, 6:18 pm

2 Answers from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

None (that I know of---except bankruptcy), other than to pay this deficiency difference for which both you and your son are liable.

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Answered on 1/16/10, 6:05 am
Daniel Press Chung & Press, P.C.

A chapter 7 bankruptcy will discharge this debt (and most others), but only as to whoever files (if only he files, you will still have to pay). A chapter 13 filed by one of you would result in a co-debtor stay as to the other, but that could be set aside unless the one that files pays the claim at 100% (over 3-5 years). You can also try to dispute the claim when they sue based on any improper steps in the repossession and sale process, but that may be an uphill battle.

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Answered on 1/16/10, 1:06 pm


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