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by Mad physicist

Question by Edward M: What happens to a vehicle when two people are on the contract and one files bankruptcy?
Me and my ex recently broken up we have a vehicle together now that I’m filing bankruptcy what will happen to the vehicle. Do they give her the option to take it, or is she now responsible for it?

Best answer:

Answer by Chip Righter
You both are responsible for the car loan. It is on both of your credit reports. You can declare bankruptcy and still keep and pay for the car. If you do not want the car ask your x if she wants to continue paying for the car and she will have exclusive use of it and own it when it is paid off. If she says she does not want it you simply turn it in and list it on your BK. The bank will auction the car for as much as possible, any difference in the payoff amount and the auction amount the bank will come after. If you have declared BK you are clear of the car however they will still go after your x for the difference. If the bank cannot collect the money themselves they will turn it over to a collection agency. So your answer is after you declare Bk for yourself yes your x is still on the hook for the car.

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