Bankruptcy? Cosigner? Car?

There are different ways to treat secured debt in a Chapter 7 bankruptcy. If you want to reaffirm the debt (or keep the car and continue paying), then there should not be any problem. The lender does not want the car back; it wants the money. If they can not get the money from you, they will get it from your dad -- that's why they wanted him as a co-signer. If you do decide to file bankruptcy, make your intentions know to the company you make your car payments to as early in the process as possible. I have sometimes told clients to go to their bank (or whatever) and tell them that they will be filing bankruptcy in a month but that they will reaffirm on the car loan and will never miss a payment. That way, the bank is not surprised when the bankruptcy notice comes in. That works for a smaller creditor but can also work for a bigger creditor if you call and have them put notes in your computer file about the bankruptcy and reaffirming the debt (IF you decide to file and IF you are reaffirming). Make sure you consult with an experienced Wisconsin consumer bankruptcy lawyer. The second link below will lead you to an attorney locator service at the National Association of Consumer Bankruptcy Attorneys.