car question regarding bankruptcy chapter 13

Question: I financed a car with a longtime friend and he has declared chapter 13 bankruptcy. Even though it is my car and I pay for it we are both on the loan. Can I lose my car due to his legal issues even though I am still paying faithfully as always? What can happen as a consequence of his actions, and didn't he need to inform me before claiming my car? Thanks for any advice!

With two of you on the note, YOU will be responsible... but then you already are. I'd say you should ask him to NOT include the car in the items he is going to NOT PAY... depends on which kind of bankruptcy... just to keep things simple and not scare the lien holder. OOPS... just noticed he's already denied he will pay for the car. You need to inform the lien holder that you will take full responsibility for the payment and that you don't intend to stop paying the full payment.

Then just keep up the payments.

Thanks, good to know if I stay on the payments as usual it should be business as usual. I was scared they would try to take it or something as I have NO idea how these things work. This will be a lesson in trusting a friend on a car note that's for sure.

I would suggest he get his own financing so the other partys name is removed from the title ( and not just from the note). That way, when the lien is released, the car won't be titled to BOTH of them.
Also, he may be required to list that loan in bankruptcy---lets say he didnt--and after the bankruptcy was discharged the POSTER stopped paying for it-and the friend who went through bankruptcy would then be left with the note to pay. I believe the bankruptcy court will require him to list the car loan. If the poster gets the loan in his own name, his assets ( the car ) as well as his credit and single ownership ( not joint ) of the car will be protected.
Who has physical possession of the car? Who drives it and under whose name is it insured? Did you co sign, or jointly borrow?

It is jointly financed right now. I am the one in possession of the vehicle and I insure and make the payments. I opted to finance it this way to get a better interest rate but now I would rather pay slightly more and get him off of there altogether just to be on the safe side. Is it possible to do that while the vehicle is listed under his bankruptcy? I am surprised that someone can file jointly financed property without permission or a power of attorney. Seems wrong to find out last.

Do you know for certain it is already listed in his bankruptcy proceedings?

The bottom line is--the creditor wants to be paid. And, YOU want the car. Get your own financing---have him inform the court and the creditor that he wants to pay OFF the loan, and have the lien released. I feel certain they will allow this--it isn't their goal to take your property--they WANT to be paid. Get financing on your own--or better yet, maybe you can get a loan WITH the company it is already with in your own name. Check around---he could offer them a settlement amount---while you are negotiating, seeing what they will accept to keep this account from going through bankruptcy ( if it hasn't already ) check around for your own financing.

Good luck. Oh, and if it actually has something to do with a "77 Charger" call me--I have hidden MOPAR fantasies!! I'll buy it!! : )

Thanks for the advice. I will check around as I am sure he won't do anything helpful. Such has been the revelation to this point.

I am not sure you need him to be helpful. If you are paying the note, I would contact them ( apparently they have been made aware of the proceedings). I suspect they very well may be willing to finance it for you and take his name off--that way, it is a win win all the way around. That way, you won't "need" him to DO anything for you.

For all thinking about Chapter 13 Bankruptcy this article may be useful: Chapter 13 Bankruptcy Law