Percentage Of Equity In A Co-owned Car
Quick question for you. My father and I co-signed on a car while I was on disability and not working. He paid half the $14,000 in cash, and we got a loan for the remaining $7,000. I made the monthly payments ($145) for approx. 1 year (total: $1740), and then my Dad paid off the remaining amount awhile ago to get if off his credit in anticipation of getting a mortgage. The idea was I would pay him directly, which he put on hold until I finish grad school. The car remains in both our names so I can register and insure it in California (he's in Arizonza). The car is now worth approx. $7,000 or less, according to Kelley Blue Book (I've checked wholesale, trade-in, and sell-it-yourself values). My equity is only a small portion, due to the small amount of payments I made, correct?? The car was not a gift. My Dad retains the largest amount of equity (most of it), right? I am filing Chapter 7 next week, and just don't want a surprise with the car. Thanks again, in advance. You're an angel.
It is likely that each of you owns 50%, as a tenant in common. Take a look at the car title, and ask your attorney how best to deal with this situation.
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