Can wages be garnished on a co-signer for an auto loan thats been repossessed?

Question

I'm considering bankruptcy, but my father co-signed with me on an auto loan. Now the collection agency has filed to have my wages garnished. What will happen to my father if I file bankruptcy? Will they garnish his wages?

Answer 1

Auto finance is what I do for a living and they can if they take him to court and get a judgment.

At that point they can attach bank accounts, garnish wages (if your State allows it) and file liens on any property he may own like cars, boats, land and homes.

You will be protected by your bankruptcy but your co-signer will not.

This will all show on his credit for the next 7-years making it very hard to get any other type of loan without making massive down payments, paying huge fees and State maximum interest rates.

Answer 2

If you file bankruptcy, you are dumping the problem square in his lap.  See SPIFMAN's response for what happens next.