My father co-signed on my auto loan before I lost my income. I filed chapter 7 but have continued to make payments on the car in attempt to keep my fathers credit from getting ruined. Would the car show up on hes credit as in default? If I gave it back to the dealer would they come after my father for payment?
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Well it already shows on his credit as "Included in bankruptcy of another" so if you give the vehicle of course the lender will go after your Dad for the balance due plus all fees resulting from the repossession.
If he does not pay they can take him to court get a judgment and then attach his bank accounts, garnish his wages and place liens on any real property he may own like cars, boats, land and homes.
All of this will show on his credit for the next 7-years making it very hard for him to get approved for any other types of loans without making massive down payment, paying huge fees and State maximum interest rates.
that is the reason for the co-signer. If you default, they go after the cosigner. They made you have a cosigner because you were a risk of defaulting.
Always a bad idea to co-sign because if the other guy doesn’t pay, the person who co-signed will get the calls and will be responsible to pay the amount owed.
Check out http://www.californiabankruptcy.info/faq.html
It has loads of info regarding California Bankruptcy laws.
Your best bet is to contact your lender.
The lender would rather get some $$ from you so they may renegotiate the loan terms to something more affordable as well.
Best of Luck!
Yes they will