Q. I cosigned on a personal loan for my son 7 several years in the past and sadly, l cannot pay out it nor can he. It went downhill following my divorce. Need to I file for individual bankruptcy?

— Lousy

A. We’re sorry to listen to about your divorce.

As you know, as a cosigner on the mortgage, you are on the hook for the loan, just like your son is.

From time to time, individual bankruptcy is the greatest selection to assistance people begin about and get back on their feet economically, mentioned Karra Kingston, a bankruptcy attorney in Union Town.

She claimed many men and women who have automobile loans that they just can’t fork out believe that they can just convert the car back in and the lease or finance corporation won’t keep them liable. Regretably, that is not the case, she said.

“When people voluntarily repossess the car, the automobile organization will try out and promote the car or truck,” Kingston reported. “However, any sum that does not protect your exceptional mortgage can however be gathered on.”

Most of the time, voluntary repossessions are huge loans and most people just can’t afford to repay that financial debt, she claimed. If you have a voluntary repossession or owe a substantial excellent amount to a dealership, then it may well be most effective to take into account submitting for bankruptcy, she claimed.

“Many New Jersey personal bankruptcy lawyers supply free of charge consultations that you can just take gain of to see if that would be your ideal route,” she claimed. “Bankruptcy is a instrument to help people today start out around and get again on their toes.”

Email your queries to [email protected].

Karin Rate Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Observe NJMoneyHelp on Twitter @NJMoneyHelp. Come across NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com’s weekly e-e-newsletter.