Q. I applied for a loan for my son seven years ago, and unfortunately, I cannot pay it back, like him. After the divorce, everything went downhill. Do I have to file for bankruptcy?
A. We are very sorry to hear about your divorce.
As you know, as a co-author on a loan, you are on the loan hook just like your son.
Sometimes, bankruptcy “The best choice to help people start over and get back on their feet financially,” said Carra Kingston, a Union City bankruptcy attorney.
She said that many people who have auto loans that they cannot repay assume they can simply return the car and the leasing or finance company will not hold them accountable. Unfortunately, this is not the case, she said.
“When people voluntarily take a car, the car company tries to sell it,” Kingston said. “However, any amount that does not cover your outstanding credit can still be picked up. “
In most cases, voluntary withdrawals are large loans, and most people cannot afford to pay off this debt, she said. If you have a voluntary repossession of property or are heavily indebted to a dealership, then it might be better to consider filing for bankruptcy, she said.
“Many bankruptcy lawyers in New Jersey provide free advice that you can use to see if this is your best path,” she said. “Bankruptcy is a tool to help people. start over and get back on your feet. “
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Karin Price Mueller writes Deceived column for NJ Advance Media and is the founder NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Subscribe to NJMoneyHelp.comfrom weekly email newsletter.