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Will My Girlfriend Lose Her Car I Cosigned for When I File Bankruptcy? – Marc

“Dear Steve,

I am divorced and have about $100k in unsecured debt due to job loss and other issues which arose in my marriage. I am just treading water with the bills (including alimony and child support) and am sinking fast. I believe I am going to have to file Chapter 7 BK as I am never going to dig myself out of this hole (at least not in this lifetime).

I co-signed on a car for my girlfriend and want to be sure that she will not lose the car in my BK.



Dear Marc,

Well this is a situation that may have a technical answer and a real world answer.

Technically, it is my understanding that the lender could say your bankruptcy is a default and want to accelerate the car loan. In that case you could probably reaffirm the loan in your bankruptcy if you wanted to.

But in reality I’ve rarely, if ever, seen this happen and typically the loan just moves ahead with payments continuing to be paid.

But regardless this is something you should discuss with your bankruptcy attorney. My bet is the bankruptcy won’t be a problem, the car won’t be an issue, and you’ll get a legal fresh start to get your life back.

If you need to find a local bankruptcy attorney you can use the link.

Please post your responses and follow-up messages to me on this in the comments section below.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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