Q: If my mom is on my auto loan as a co-buyer (not co-signer), and I file for chapter 7 bankruptcy, is she protected?
A: If you are asking whether she is protected by the automatic stay that goes into effect when a bankruptcy is filed, from the creditor seeking payment from her - it depends. You indicate she isn't a signer - do you mean she is not on the loan? If she didn't sign the loan as a co-borrower, and didn't sign a personal guarantee for the loan, then the lender has no recourse against her for collecting the loan. Do you plan to keep the vehicle and continue paying? If so, you need to talk with your attorney about the Reaffirmation Agreement that is required to do that. No attorney? I urge you to get advice about this from an experienced bankruptcy attorney. Some of us offer a half hour no charge consultation.
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A: No. Co-buyer and co-signer are essentially the same - both parties who signed are responsible for the debt. If you file chapter 7, surrender the vehicle and receive a discharge of the debt, then your mom will still be obligated on the debt.
Theodore Allan Greene agrees with this answer
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