What happens when the cosigner on my car loan goes bankrupt?
I had a cosigner for my first car loan. Recently, he's had some financial setbacks and had to file for bankruptcy. How will this affect my car loan?
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Answered on Apr 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“You’re the primary owner of the car and the primary name on the car note. Even if your cosigner declares bankruptcy, it shouldn’t affect the loan at all.
In fact, you may want to think of removing him from the loan, as he is no longer able to provide financial support anyway. Ask your lender about a cosigner release form and see what they think about removing him.”
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