Are you liable for a car loan if the owner files bankruptcy and was charged off?

Whether you are liable for a car loan if the owner files bankruptcy and it was charged off depends on the specific circumstances and the terms of the loan agreement. In general, when someone files for bankruptcy, their unsecured debts, such as credit card balances and personal loans, are discharged, meaning they are no longer legally obligated to repay them. However, secured debts, such as car loans, are not automatically discharged in bankruptcy.

If you are a co-signer on the loan, you may still be liable for the debt even if the primary borrower files for bankruptcy. As a co-signer, you are equally responsible for repaying the loan, and the lender can pursue you for payment if the primary borrower defaults.

If you are not a co-signer on the loan, but the car is registered in your name, you may still have some liability for the debt. In some cases, the lender may be able to repossess the car if the loan is charged off.

To determine your exact liability, it is important to carefully review the terms of the loan agreement and to consult with a bankruptcy attorney. They can help you understand your rights and options, and can represent you if necessary in negotiations with the lender.