Cosigner on car loan before filing bk 13. Need advice.

[andy158]

We co-signed on a car for our 25yr old son before we filed 13 in 2009. We are half way through our 5yr plan and we got notice of arrearages on our son's loan to the tune of $1,500. He lost his job last year and is working part time and has been making interest only payments for the past 6 months. Now the bank has contacted our attorney because it is listed in our assets of our bk and wants the full arrearages paid by April or they will repo the car. The car would have been paid off in 12 months had he been making the scheduled payments. We helped him all we can and have depleted our emergency fund. The next $500 dollar payment (regular payment + 25% of arrearages) is due on February 15 for him to keep the car. $2,400 is still owed. His other expenses and student loan take what he now makes and we cannot help him any longer. He is moving back in with us and will be using one of our cars until he secures a better job. Out attorney doesn't seem too concerned about the issue and said we are protected.

My question is can the bank hold us accountable for the balance after discharge?

[newbie2]

Since it is a secured debt make sure your attorney has it listed in your plan, and also changes it to reflect the repossession (with unsecured deficiency owed) after it happens. As long as it is addressed within your plan (the repossession and deficiency) then you should be ok.