Cosign auto loan??

[bkpain]

So a close friend asked me to cosign her car loan today. She knows I am considering bankruptcy but currently my credit score is still good, and would like to ake advantange of it while she can. Hypothetically if I agree to cosign and then file, what happens to the car?? It would be registered to her. I would love to help her out but don't know if I can. BTW if I wasn't contemplating bankruptcy I would cosign. She has been an employee of mine fir 7 years and I haven't been able to gve her a raise for 2 yrs.

[bkpain]

Thanks phaze, that's pretty much what I had gathered as well. I was just worried about that knowingly taking on a debt that I know I can't pay part.... I will keep digging and see what else I can find. Hopefully someone with experience in this type of thing will comment

[DebtHater]

It's nice to help out friends, but if I were in your shoes I wouldn't get involved, that is if you want to keep your friendship, BK or no BK.

The closest of friendships (and even family relationships) have been destroyed because of this very situation gone bad. You said it your self, you do not want to take on a debt you can't pay. If she doesn't pay, who do you think the finance company is going to come after? Both of you, regardless of who's name is on the registration. If that happens talking to one another could get, at a minimum, uncomfortable.

Taking all of this into consideration, I would politely tell her that while you would like to help her out, you can not.

As a side note: Just because a specific person is named on the registration (her's) doesn't make you any less liable for the loan. The bank will treat both of you equally when it comes to the loan defaulting. The only difference is you will be less effected because you don't need the car to drive around in.

[keepinitreal]

If you do co-sign and then later need to file for bankruptcy, just include the loan you co-signed for as one of your creditors. Then when your bankruptcy is discharged, you will not be liable for the loan. If your friend is making her payments as agreed, it shouldn't affect her loan. She'll just be liable by herself, instead of both of you being liable.