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I have an open auto loan and have finally caught my payments back up. My mother is overwhelmed by her debt and is the co-signer on the loan. She has officially filed for chapter 7 bankruptcy and told me that she will reaffirm her auto, and I will be responsible for my loan and she will no longer be co-signer on it.

The thing that worries me is that I logged into the company’s mobile app to make a payment this morning and my account had no open loans. I called the customer service line and after entering my information I was transferred to the bankruptcy department which isn’t open on the weekends.

How do I make my payments?

I was told that they may not allow activity on the account until the bankruptcy is final; but that leaves me with the issue of without making payments, does the account go past due?

I’m very confused and would love some clarity on this whole issue.

Do I need to start focusing on getting new transportation?

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    So who owns the car - you or your mother? – gnasher729 Oct 27 '18 at 14:59
  • @gnasher729 My mother is the primary on the loan if I remember correctly; but I believe the important part was her or me, instead of her and me. – PerpetualJ Oct 27 '18 at 15:18
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    I don't care about the loan, I care about the car. Is it your car or is it your mother's car? If she is the co-signer then there are two people who signed the loan, you and your mother, and the bank will eventually want money from whoever can pay. Which is you. That's why they want a co-signer, so if someone goes bankrupt, the other can pay. But if the car is yours, then you keep it. If the car is hers, it might be a problem. – gnasher729 Oct 27 '18 at 16:15
  • What @gnasher729 is getting at, is who is listed on the title of the car? When the registration is due, who is listed on the bill? – mkennedy Oct 27 '18 at 16:42
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    As soon as it is effectively certain that your mother will successfully file chapter 7, the company should allow you to reaffirm the debt. Essentially, you sign a new loan for the full amount and they use it to pay off your obligation on the old loan. You can then make payments. Note that this has no effect on whether you do or don't get the car! – David Schwartz Oct 28 '18 at 3:49

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