Removing repo that wasn't repoed

[Anonymous]

I CO-SIGNED FOR A TRUCK FOR MY HUSBAND BACK IN 2005. HE STOPPED MAKING PAYMENTS, THE BANK REPOED IT BUT HE HAD FILED BANKRUPTCY(CHAPTER 13) SO THEY GAVE IT BACK AFTER THE BANKRUPTCY, THE LOAN WAS REAFFIRMED AND HE CONTINUES TO PAY ON IT TODAY-PROBLEM IS- I HAVE A REPO ON MY CREDIT REPORT. I TRIED TO GET IT REMOVED BUT THE BANK VALIDATES IT. CAN I DO ANYTHING? 

[llecs]

I know virtually zilch about BKs, but I believe a TL listed as IIB would be about as damaging as the repo, score-wise. Also, if creditors-to-be see a IIB TL, then it could cause problems for approvals down the road. Bumping for those who know a heck of a lot more.

[ScoreBooster]

---

@Anonymous wrote:

I CO-SIGNED FOR A TRUCK FOR MY HUSBAND BACK IN 2005. HE STOPPED MAKING PAYMENTS, THE BANK REPOED IT BUT HE HAD FILED BANKRUPTCY(CHAPTER 13) SO THEY GAVE IT BACK AFTER THE BANKRUPTCY, THE LOAN WAS REAFFIRMED AND HE CONTINUES TO PAY ON IT TODAY-PROBLEM IS- I HAVE A REPO ON MY CREDIT REPORT. I TRIED TO GET IT REMOVED BUT THE BANK VALIDATES IT. CAN I DO ANYTHING? 

---

Since the loan was reaffirmed, the credit-reporting of a repo is inaccurate.

On your credit-report, it should only show the missed payments prior to the reaffirmation but NO "IIB"-notation since YOU didn't file BK.

I'd say you should contact the bank directly and ask them how it's possible that they "repoed" a car your husband still owns, makes monthly payments on and reaffirmed in his BK..

[guiness56]

It does not matter if you are a co-signer on a loan.  If that loan is included in a BK it is legal to show on your CR IIB, whether you filed or not.  That is one of the hazards of cosingning.

Since it was never repoed but reaffirmed, there should be nothing on the OPs CR other than the loan.

Send a direct dispute per FCRA 623 to the OC and dispute the repo remark.

[ScoreBooster]

---

@guiness56 wrote:

If that loan is included in a BK it is legal to show on your CR IIB, whether you filed or not.  That is one of the hazards of cosingning.

---

We obviously disagree on that one. Here's why: A co-signer is still responsible for the debt. ACCOUNTS are not discharged in BK, it's the DEBT. The co-signer didn't file for BK, wasn't discharged and is still responsible for the DEBT. An IIB-reporting in such a case would show a balance owed on an account IIB. That alone is technically impossible.

This is directly from Experian - although for a co-signed mortgage:

http://www.experian.com/ask-experian/20090415-mortgage-cosigners-credit-report-not-affected-by-bankr...

"The status line for accounts in bankruptcy will state, “account included in bankruptcy.”

Both will appear in the credit report of the person that declared bankruptcy, if they included that account in their filing. The good news is that neither will appear in your report if you did not declare bankruptcy.

Experian checks your credit report for the presence of the bankruptcy public record when an account is reported in bankruptcy. If there is no public record, the status of the account will not indicate it is included in bankruptcy.

As a result, if the mortgage is kept current, there should be no adverse impact on your credit report."

Or this one:

http://www.bankruptcylawnetwork.com/2009/03/18/i-co-signed-an-account-what-happens-if-i-file-bankrup...

[guiness56]

I wouldn't put much faith in what a CRA says.

However, I did ask an attorney who is very good at their job and was told yes, it is very possible to show as IIB on your CR even if you did not file the BK.  He said it is unlikely to happen but could.

People that are AUs are not supposed to get sued but it does happen.  It does not make it right but it can happen.

[ScoreBooster]

There's no doubt that it could happen - but I think chances aren't too bad you could get it fixed if you fight it. As I said, the reporting would be very difficult. Reporting the account as $0 Balance wouldn't be accurate because the co-signer is still liable - and reporting a bankruptcy and a balance the same time is something the creditor would have to explain as well.

I also heard that the IIB-notation is connected to the individual who filed and not to the account IIB.

[guiness56]

The IIB is connected to the account if the person who filed included it.  Only that account can show IIB. 

CP 13 is the only BK that keeps both the debtor and the co-signer safe.  As long as the person who filed makes the payments,  the co-signer is safe.  If they default or turn it into a CP 7 then co-signer is still liable.