Longview, TX Bankruptcy Law Firms & Lawyers

In California, most mortgages are resolved by non-judicial foreclosure (sale of the property at auction). By taking that action, the lender does not have a deficiency claim against a co-signer. However, if there was a junior lien (2nd or 3rd) that was eliminated in a foreclosure, they could sue the co-signer. The co-signer should see an attorney so that the facts of this particular matter can be analyzed.

When you file a bankruptcy case, the court will want a list of every debt you think you might possibly owe to any person, anywhere in the world. So yes, you should include the unemployment over payment when you file. As to whether or not your bankruptcy case will eliminate that particular debt by discharging it, the answer usually is yes but that answer can sometimes change when a lien has been filed as you indicated has been done. When a lien has been filed, you have to look at the exemptions and compare those to the property before being able to guess. Something else that effect the answer is the timing of when the lien was filed compared to when the bankruptcy case was filed.

You will need to contact the lender to have them release the lien on the title. You can get the lender's information from the department of motor vehicles or wherever you normally register your vehicle.