How is a co-signed car handled in Chapter 7?

[curlytop]

I co-signed a car for my boyfriend's daughter almost two years ago. I have never had possession of the car or paid any of the payments. By now, she probably has some equity in the car. I also have a car loan in my name for my 2008 Toyota. I owe about what it is worth.
What will happen to her car if I file a Chapter 7? I am in California.
Thank you for any info. I am really worried about this. I just found out today that CapOne got a judgement against me last week.

[Floridagail]

Nothing will happen to either car, as long as the payments are kept current, these are secured debt.
(If she defaults they will go after her now, since your bankruptcy will discharge your responsiblity for that loan. You need to list it in your bankruptcy because you have to list all your debt. I had same sitution on a car. The person never got notice of my bankruptcy, just the lender. Try not to worry.

[curlytop]

Thank you, Floridagail. So, then I do not need to reaffirm the loan? Will they block her from making online payments?

[pamkev]

Thank you, Floridagail. So, then I do not need to reaffirm the loan? Will they block her from making online payments?

I read alot on this forum that people's access to online accounts are block to make payments. Maybe do it though your banks bill pay.

[Floridagail]

Definately do not reaffirm this debt. She is now totally responsible, if she wants the car , she keeps paying. They may stop access to online account until they get the discharge, or permanently. Weird how these companies act. I believe GMAC did do it to me. I was really mad they reported it on my Credit report as IIB , as a negative, I kept it current and we paid it off shortly after the discharge. I disputed it a couple times, and all 3 cra did finally remove it totally from my reports.

[LadyInTheRed]

You should review the loan agreement. It is possible that you BF's daughter will have to qualify for the loan on her own or find a new co-signor if you don't reaffirm the debt. The agreement may provide that they can accelerate the loan if she can't do that. But, I doubt they will bother if the payments are kept current.