My bk 13 has affected son's car loan. Need advice.

[andy158]

This may be long, but I will be as brief as possible.

Filed July 2009.
Cosigned son's car loan pre bk.
Son (22yrs old with same middle and last name as me) has same vehicle (make and model) as me just a different year.
Son gets letter from lender in September stating car is under bk13 and is being surrendered.
Son disputes claim and continues making payments.
Payments are returned each month and lender insists car is in bk plan and is going to be repo'd.
This continues for 6 months and lender finally figures it out after our bk lawyer proves his car is not part of bk.
Son now starts making regular payments again for 1 year and calls for payoff.
Lender has now tacked on late fees, legal fees (went to collections).
Lender calls and says he needs to send 5 consecutive payments of $500 to bring loan current and keep car.
I help son with payments as he only now has a part time job.
After 2 $500 payments lender is now bought out by a National Bank.
Remaining payments sent to new leinholder and told he has to send additional $500 because of miscalculations found in audit during loan transfer to keep current.
Lender now is calling remainder of loan balance by November or car is repoe'd.
Car is a 2000 Ford Focus with 100k miles and the lender wants $2,572 by November!

Should I persue this legally or let bank sieze car? Son's credit is crap now because of the collections.
Could I be held responsible for the loan because I cosigned after my bk is discharged in 2014?

[kornellred]

Your bankruptcy should not have affected your son's credit situation even though you co-signed for his car loan, if the payments were being made. Unless you were actually the primary borrower and your son was responsible for payments if you did not pay - then that is a different story.
When I filed for Chapter 13, I was also a co-signer for one of my son's car loans. Even though I was a co-signer, I had to list the loan as a debt. The lender is listed as filing a claim in my case, but the amount is listed as zero, since my son was making payments. His credit was never affected by my bankruptcy.

[andy158]

Bank assumed the loan was in my name. Only my name appeared on the payment coupons. Had to list his loan as a debt and they did file a claim. He was making regular payments until they started returning them. They had charged off $2,966 of the loan and made arragements to sieze the car until they figured out their mistake that the car is not part of my bk!. We were working with them in good faith and then the loan is taken over by another bank. The new bank listed his loan as high risk and jumped the interest rate to 13%. My savings is gone due to our car and home repairs recently and he cannot afford anything over his regular payment now.