Do I file bankrupt?

[ifeeltrapped]

Will bankruptcy fix my dilemma? I thought I was co-signing on a truck for my at the time boyfriend, but turns out my name got put at the first on the loan. We are not together anymore. When we were together, he never made payments on time, every payment is at least 29 days late, and his mother has made 3 of the 6 payments he has made in the last 9 months since he got it. He has not paid the sales tax so he is driving it illegally. Also, there is a $7,000 lean on his truck he traded tacked onto the loan, so the loan is like $22,000. I refuse to pay for any of it while he is driving it. I have no signed the title, for it was never licensed. If I file bankruptcy will it get me out of the situation? I do not want my wages garnished or be taken to court over his truck. Do I do it now and get out of it, or wait until it's urgent? I am a recent college graduate and will lose nothing but the truck if I file, but what will happen to the truck and to him if I file? He claims that he will get to keep it and i will still have to pay?

[WithLove]

Do you know where he is staying?

 

If you do nothing, they will start sending out tow companies to pick up the vehicle. you'll have to explain that you no longer have the truck, and give them his address/contact information.

[guynextdoor]

Ok where is the truck now? You need to get that truck and try to sell it, even if its at a loss. Do not file bankruptcy. You will take a hit on the loss but it won't ruin your credit like a bankruptcy would.

[DancingFool]

A bankruptcy will not only ruin your credit for many years, but can seriously hinder your ability to get jobs, rent an apartment, get loans, etc. Don't take it lightly because you do in fact have a lot to lose and it can come back to haunt you even years down the road in a bad way. On top of that, you may not even qualify for it. It's really not quite as simple as you think.

 

Having said that, it really doesn't matter if you are first or second. If you co-sign something, you are on the hook, period. So please don't ever again do anything such. Basically, the way that this works is that if he doesn't pay, the financing company will repo the truck. Then they'll sell it or auction it off. Whatever is the difference between the money they get out of the process and your loan is what they'll come after you for. Unfortunately, this is all going to go on your credit, including the late payments and the repo. Still this is not as bad as a bankruptcy.

 

What you do need to do is consult with a lawyer on what your rights are regarding the truck as well as the liabilities and what you can do about getting out of this. Ultimately, most likely this will end up costing you no matter what. The only question is what option will cause least amount of damage. File it under really hard lesson learned on money and finances.

 

I'd also like to add that please please get legal advice and don't just take this into your own hands. Like it or not, he also has certain rights in the vehicle and you can get into a heap of legal trouble without knowing how to navigate all this correctly.

[Cheetarah]

what will happen to the truck and to him if I file? He claims that he will get to keep it and i will still have to pay?

 

No. IF you qualified for a Chapter 7, it would be discharged through it and he would be solely liable for repaying the loan(and yes, he'd get to keep it - Provided he actually makes payments for it). If he doesn't, it will be repossessed and he will be stuck with the 22k debt, and asking himself the same questions you are.

 

If your financial situation is otherwise sound, I'd explore all my other options, first. Refinancing is likely not an option given the payment history. However, it is something you could look into.

 

Car loan lenders are generally pretty unforgiving when it comes to missing payments. It's not like medical bills where you can go a year or more without paying before they take action. Repos happen quickly.

[greta96]

I think it would be best to consult with a lawyer, they would be able to advise what's the best course of action in your situation. Also, if there is anything else you co-signed with him, make sure to bring that up as well. Don't try to fix this on your own, because it's a complicated situation and, even though you will lose money, you want to find ways to keep the loss to a minimum.

 

Keep in mind that your ex knew what he was doing from day one, when he asked you to put your name on the deed, so he probably has things figured out, while you were kept in the dark and didn't consider all the consequences.

That's why you need a professional.

[ParisPaulette]

I've given you a link to a couple of articles that lists different options you have for removing yourself from a cosigned loan. link removedlink removed And this one: link removed which had online attorneys giving her advice over a similar issue.

 

I don't know what country your in, I presume the U.S., but this at least can give you some direction. And yes, you need to consult an attorney. No one on here is going to give you legal advice as a legally trained expert and you need to explore what your options are--quickly--before it becomes a huger situation.

[christwowheels]

Bankruptcy really is a last resort. I agree with the other people here that have suggested seeking the advice of an attorney. Laws vary from state to state and there may be things you can do that none of us could possibly know about.

 

Sadly, you're learning a costly lesson about how you shouldn't entangle yourself financially with a boyfriend or girlfriend. Sure, you may love them, but they need to keep their own financial situation in order, and really the only time to financially tie yourself to someone else is after you're married. Maybe then you buy a house, but even then, your vehicles shouldn't be in each other's names because that makes things way too complicated.

[sadchick83]

If the debt is secured against the truck, they (lenders) will repo the truck. Sounds like you will owe half of what is still outstanding on the loan minus the equity in the truck. This probably isn't enough of an amount to claim bankruptcy. Why don't you read the terms of your loan. Or get a copy and find out what happens with missed payments.

[IAmFCA]

If you filed bankruptcy under reorganization, then you would still have to pay, just at restructured amount. If there were no assets or income available with which to pay, then you qualify for relief.

 

They are likely to sell the truck in any event, to recoup as much as possible, unless the debt exceeds the truck's value.

 

He would then become solely responsible for the debt

 

Bankruptcy looks at your entire financial picure and will impact any othe loans, credit cards, etc.

[ifeeltrapped]

The only good thing is that I don't have anything else to lose as of this moment. I just got my "real" job. It's a very good job, but I'm not willing to sacrifice my wages for his truck. If I file, all I lose is the truck, a few credit card bills, and medical bills from my kidney probs. Which, all in all, would be positive for me. I know I would have to build my credit back up, but I'm a very responsible (except with those I date) person and am never late on a bill. I live with my parents at the moment and my car is in my dad's name. So in all honesty, is bankruptcy my only option?

[avman]

I really think you should talk to an attorney about this. I don't know that bankruptcy is your only option here. Maybe suing the ex boyfriend in small claims court will provide some relief - but there are a lot of variables with that. Perhaps the auto company would agree to take back the car and hold you minimally liable and go after the ex. However the laws are so variable from location to location it really is best to get some sound legal advice about your situation.

 

Be vary cautious about relying on advice from the internet and strangers who don't know you or have the proper background. We all mean well of course but in many cases there just is no substitute for sitting down with an attorney and talking through the specifics of your situation.

[chickadeedee]

People think bankruptcy is the easy way out but it isn't necessarily. There are lots of other options. With bankruptcy, your credit is basically gone for 7 full years. And you can try for debt restructuring which instead reduces the amounts to a reasonable amount you can afford to pay off and still keep your credit in tact. So please consult local free debt counseling services.. Sometimes county/state agencies offer that so you should start looking around for free services to help you analyze what to do.

 

btw, re: the truck, you might consider calling the bank and explaining what happens. An auto is considered a secured loan, so they address that usually just by re-possessing the car and taking it back. So if you tell them where he lives and he is not paying the payments, they will come re-possess the car and that may either free you from the debt entirely or possibly free you from all debt except the difference between what they wholesale the car for and what is still owed on the note. So trying calling the bank. But don't let him know you are doing it because he'll try to hide the car so they can't find it. A re-possession is bad on your credit, but not as bad as a bankruptcy.

 

And definitely look for some free debt counseling services in your area... don't go for the ones that charge you for the service, but the free ones that can negotiate on our behalf as a public service. Google for 'free credit counseling services' in your area, or contact your state/county social services office to see if they can direct you to an appropriate source.