My daughter is way in over her head financially and has finally agreed to speak with a bankruptcy lawyer about filing chapter 7. She will reaffirm her own car, so she doesn't lose it. Now for my question ... she co-signed a car for a friend a few months ago. She says if she doesn't reaffirm her friend's car then her friend will lose the car (since she required a co-signer to get the car). I say that's not true. Can someone shed some light on this? Will her friend lose the car if my daughter does not reaffirm it?
The purpose of having a co-signer is to have someone else make the payments in case of default. As long as her friend continues to make the payments on time she will be able to keep the car. If she does not make those payments, the repo man will come. Why? Because your daughter will be discharged from her obligation as the co-signer. No lender will take back a vehicle if the payments are current.
Thank you VERY MUCH for your prompt response. This is what I thought (and was hoping for). I'll pass the information along to my daughter. I know this will take a huge load off her mind.
