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I co signed a car loan for my child and am now filing chapter 13 for myself. What happens to her car and her credit?

Commerce, GA |
Attorney answers 6


You will have to declare if you are going to continue payments on the contract in your 13 plan.

If the contract continues to be paid, she may be unaffected by your Bky & she could keep the car.


The fact you are asking here is VERY worrisome. It tells me that you may be filing pro se, which is almost ALWAYS a disaster in Chapter 13. Don't! You MUST get a lawyer. And a lawyer will discuss the effects on co-debtors.

The filing MAY have major effects on her. Your plan MUST deal with the debt. And it must deal with it in a way that the trustee, judge and other creditors agree upon. No standard form language covers this.

Depending on your case, you may be able to draft the case in a way that lets her keep the car and keep paying, but do not jeapordize her car and your case with a pro se filing. Rely on your lawyer.


It depends in part on who is paying for the car. If the child continues to pay for it in a timely manner, there shouldn't be a problem. Sometimes, however, creditors will want to be treated through the plan, especially if the contract calls for default if a signor files bankruptcy. You should consult a bankruptcy attorney in your area for specific guidance.

Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal advice. If you are in need of legal advice, you should consult local legal counsel.


Your filing Chapter 13 will most likely have an impact on her beacon score. You can put a provision in your chapter 13 plan to state that she will make the car payment directly. She will not lose the car as long as she remains current. In the alternative, you could pay for the car at contract interest in your plan to protect it. I agree that you must meet with a local bankruptcy to so that you understand every option and the consequences.

No attorney client relationship exists unless we have a written contract. Nothing in this post should be interpreted as legal advice.


If she makes the payment then she keeps the car. Her credit should not be affected if she makes the payment.


As long as the payments to the creditor are paid, she should not lose the car, and her credit score should be safe. However, whether you pay the payment in the plan, or whether she pays the payment outside the plan are options you should discuss with a bankruptcy practitioner in your area.

This is intended as general informational material only and is not intended to offer legal advice. You should not rely on or use information presented here without consulting a lawyer regarding your specific circumstances, changes to applicable laws, rules and regulations, and other legal issues. Answers herein do not establish an attorney-client relationship.