Expert: Terry Leeders - 11/28/2008

Question
I cosigned a car loan with my son that he just paid off but the title came in my name. (I understood that I was just the cosigner) Anyway I now am going bankrupt. Will they take the car away from my son? He paid every payment and I was planning to sign it over to him to get him off my insurance. Will I get in trouble for that now that I'm going bankrupt? NJ

Answer
Any transfers of assets before a bankruptcy could cause problems in the case.  It sounds like the dealer messed up when you bought it, and just put the car in your name, with your son cosigning on the loan only, and not as a joint owner.   Talk to your lawyer, as they may be able to protect the car for you.