As a co-signor

[areck]

What happens in BK when you co-signed on a car loan for someon else.

My spouse co-signed (my credit was already shot) an auto loan for our daughter back in June of 2008. She doesn't live with us, she makes the payments (though she herself is also struggling and has had some late-pays).

Would she be made to surrender the car, since the co-signor is now insolvent?

[HHM]

Short answer, nothing

So long as "someone" is making payments on the car, no one cares. You will discharge your responsibility for the loan. From a legal perspective, you have left your daughter holding the bag as she would be the only left who is legally responsible for the debt. However, as I said, so long as someone is making the payments to the bank, the car stays where it is.