Posted on: 04th Feb, 2009 12:08 pm
My mom is a co-signer on one of my credit cards - I cannot get her involved in bankruptsy - she has alzheimers. My car is not exempt and is fully paid for- it has a value of $14,000. If I sell it and pay off the credit card she is on - I could leave her out of my mess. Would that be legal?
Yes, since you have paid off your auto loan, you can sell off your car and repay off the credit card debt which you have co-signed with your mother. It will not be illegal. Now, if the credit card debt is paid in full, the bankruptcy will be filed on the remaining credit cards and other debts you have. If your qualify for Chapter 7 and your bankruptcy gets discharged, your credit report will show as "included in bankruptcy" against all the debt you file under bankruptcy and will show $0 balance.
Can I legally cash out my 401k while in Chapter 13?
yes that would be legal