Odd bancruptcy question?

Okay, I have a car that I'm a co-signer on, the car is registered to me, the payments are drafted out of my checking account every month--they've never been late and I've had the loan since 02-2008. The primary on the loan was put on there just to lower the interest as I'm very young and don't have established credit. Well now they are declaring bancrupcy (Ch 7) and I have received a letter in the mail detailing their personal information and some meeting date of the creditors etc. What does this mean? Does this mean they have put the loan which they've never even paid on as a part of their bancrupcy? What does this mean for me? I know Toyota finance is not going to take the car because the payments will continue to be made on time until it's paid off. Is this going to be affecting my credit? Do I need to attend this meeting of the creditors or petition to have the loan left off the ch 7? If this will affect my credit, do you think Toyota finance will help me to get a new loan on the balance owed so they can't claim the loan on the bancrupcy because it wouldn't exist anymore? I would even pay a higher interest rate--I just don't want someone else's mistakes on bills that don't even pertain to me to ruin my credit.