Hey there,
*Edit due to misleading title. "Car is already in Grandmothers name, but the payments were being made by my Father and she has no income to make the payments as of this time."
Colorado, Car Loan, State Farm Bank, Hopefully this is the right sub, and if not I'll post elsewhere.
So as mentioned above my father passed away mid November and due to him trying to buy a house in 2019, the car was transferred into my 82 year old grandmothers name (He was cosigned onto the account and was making all the payments). It's worth around 12k and the loan is standing at 24k due to him trading in 2 cars back to back in 4 years. My question is what would be the best step to give the car back to the bank and have this effect my grandmother as little as possible.
I've heard we can have her declare bankruptcy then forfeit the car, then we won't have to worry about the 12k difference. Then there is the other side of forfeiting it to the bank and having them sell it to see what they can get and she owes them the difference.
She has no income, and is living with my aunt, but she also has her own car that I wouldn't want to have to bring into this mess.
To be honest I'm pretty lost and this has been thrown onto myself to figure out and I'm just curious what would be the best financial decision for the situation.
Thanks
Submitted January 23, 2021 at 12:09AM by 9432geek https://ift.tt/3p6zuW2
