Please Help--Question about co-buyer on auto loan

[bk7indiana]

I am filing BK7 in Indiana, I bought my first "NEW" car in 2005 with the help of a co-buyer who is my grandfather. The car has had major problems since. I had to have a new engine put in it in April of this year, which cost $3500 and now its in the shop again needing a new oil pan costing another $380. The car only has a little over 40,000 miles on it. I do not want to keep this piece of SH*T car plus now I am losing my job at the end of this month(work in the auto industry) and have already seen the BK lawyer. My questions are:
1.If I file BK on the car what responsibility will my gpa have? He is 85 now and his health is getting worse by the day. I do not want to burden him with this, but I cannot afford to keep the car.

2. My BK court uses nada to value the car, would they take into consideration all the trouble I have had with it to assess it's value?
The NADA value on my car ranges from $4,650 $5,500 $6,200 $7,700* now in my eyes since I had an accident with it 2 weeks after owning it and the front bumper had to be replaced, along with the engine trouble I have had the car would be worth the lowest value. My payoff quote is $6700 which is about $2000 more than what it is worth.

3. What will happen to my/my grandfather because I am currently one month behind in payments and do not want to pay anymore on this car if I don't have to?

Thanks in advance for any and all help you can give me!

[bk7indiana]

anyone? please?

[bkmaggster]

My understanding is this: if you include the car in the BK, and let it get repo'd, your grandfather will be on the hook for any deficiency in what they sell it for at auction and what is still owed. From what you have stated, it will sell for less than what you owe at auction, so they may go after a judgement on your grandfather for what's left.

[veryclose]

And unfortunately, they will try to get money from your grandpa, no matter what his circumstances are.

Nothing can be done about this car, but in the future you may just want to have a personal policy that if you need a co-signer you'll do without whatever it is. I am discharged recently and had to go looking for a car, since my lease is up next month. I did have a particular car in mind and the dealer asked me to get a co-signer. I told them that's not going to happen and left. I did go to another dealer and stepped down a bit in the amount of car I wanted and got it by myself. I am always paranoid about life throwing a curve ball and someone ending up on the hook for a loan I took out.

[keepmine]

anyone? please?

You need to fihure out a way to get current and stay current because, your grandfather is squarely on the hook and will very soon start dealing with collection activity.

[Amy26]

My best friend co signed on a car loan for a random friend back in 2005 or so... she didn't know the ins and outs of cosigning and that friend decided he wanted to keep his car and not make payments on it. He skipped town and didn't tell anybody where he went... well, the judgement on the car came back to my best friend and she could not get out of it no matter what she did. So, just because of that she had to file for bankruptcy.

[bkfdrusa]

If the borrower defaults, the co-signer is repsonsible for the loan. They may not file a lawsuit against your grandpa because it costs them a lot. your grandpa might be getting all the creditor calls.