Quote:
Originally posted by Peaches
The car is collateral for the loan. If he defaults on the loan, they have every right to get their collateral.
It doesn't matter if she's current on the statements. He is filing bankruptcy and per BR law, he has to include all his debts - which now include the car.
No, he's not guaranteeing she will make the payments. SHE is guaranteeing she will make the payments and by being a co-signer, they are both equally liable for the payments of the car. That's why it's called a co-signer. 
Her loan contract probably outlines all this, BTW.
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How can he default on the loan unless she defaults first?
A cosigner is a person who signs his or her name to someone else's loan agreement or credit app and agrees to pay the debt in full if the primary signer defaults on the loan.