Question: I have a joint car loan (with a bank) with my ex-husband. He has taken over paying the monthly payment until he can take over the loan, but if i claim bankruptcy what will happen to the car loan? Will he be able to continue to make the monthly payment or will this loan become defaulted?
Thank you.
Answer: In most cases he will be allowed to continue making the payments on the car loan. One option would be for him to contact the bank now, before you go bankrupt, and ask to have your name taken off the loan. If the loan is entirely in his name, there should be no issues.
If the bank won’t remove your name, your husband should discuss it with the bank first, and ask them to confirm that he won’t lose the vehicle if you go bankrupt.