Q: I am a co-signer on a vehicle. If I file bankruptcy will it affect the owner of the vehicle.
Thank you
Kellie
A:
If you file for Chapter 13 relief, there is a "co-debtor stay" that takes effect when the Petition is filed with the bankruptcy court, which pertains to claims that are "dealt with" by the Plan.
If you file for Ch. 7 relief, there is no co-debtor stay, and the vehicle lender may call, i.e., accelerate the loan balance because it feels insecure, having lost one of its obligors to bankruptcy.
Speak to an experienced Louisiana lawyer about these issues, who will have learned the details of your financial situation, to determine your best path forward.
Randy Bryan Ligh and Timothy Denison agree with this answer
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