Hello, I have a question about an auto loan I co-signed on for a family member. A litttle history about the loan - It is from 2006 for a new truck and it was repo;d back in 2008. The family member has since filed bankruptcy chapter 13 and the leader is BB&T. I got my free credit report from all three of the CRAs back in november 2013. At that time BB&T was granted a judgement for the balance after the truck was sold at an auction. So of course this means it was placed on my credit report. Fast foward to january 2014 - the bankruptcy went through for my family member. BB&T put a claim in on it so that they would be repaid through the trustee during the next five years.
My questioin is about getting BB&T off my credit report. As a co-signer I am protected under chapter 13 filing from BB&T trying to get any money out of me since it is now part of the bankruptcy. What I have done so far is get a copy of the original loan app from the dealership showing that I am just a co-signer. Now I plan on sending all three CRA;s a copy of this with a letter stating this is part of a bankruptcy and please remove it off my record.
Am I doing this correctly? 
Chapter 13 and Co-signer Liability
In contrast to Chapter 7, which does not provide much protection for the co-signer, the Chapter 13 petition is a much more flexible (and responsible) alternative for both the primary debtor and the co-signer. Under the Chapter 13 bankruptcy guidelines, the debtor will be taking the significant role in a trustee-appointed repayment plan. This plan, which covers a period of three to five years, will result in all of their debts being paid off to the various classes of creditors, and this will include the debt that was co-signed. The co-signer will still be fully responsible for the loan repayments if the petition filer is unable to. As long as the repayment plan and schedule is maintained, the co-signer will be protected from any creditor debt collection activity.
@Goat14 wrote:
Hello, I have a question about an auto loan I co-signed on for a family member. A litttle history about the loan - It is from 2006 for a new truck and it was repo;d back in 2008. The family member has since filed bankruptcy chapter 13 and the leader is BB&T. I got my free credit report from all three of the CRAs back in november 2013. At that time BB&T was granted a judgement for the balance after the truck was sold at an auction. So of course this means it was placed on my credit report. Fast foward to january 2014 - the bankruptcy went through for my family member. BB&T put a claim in on it so that they would be repaid through the trustee during the next five years.
My questioin is about getting BB&T off my credit report. As a co-signer I am protected under chapter 13 filing from BB&T trying to get any money out of me since it is now part of the bankruptcy. What I have done so far is get a copy of the original loan app from the dealership showing that I am just a co-signer. Now I plan on sending all three CRA;s a copy of this with a letter stating this is part of a bankruptcy and please remove it off my record.
Am I doing this correctly?
Chapter 13 and Co-signer Liability
In contrast to Chapter 7, which does not provide much protection for the co-signer, the Chapter 13 petition is a much more flexible (and responsible) alternative for both the primary debtor and the co-signer. Under the Chapter 13 bankruptcy guidelines, the debtor will be taking the significant role in a trustee-appointed repayment plan. This plan, which covers a period of three to five years, will result in all of their debts being paid off to the various classes of creditors, and this will include the debt that was co-signed. The co-signer will still be fully responsible for the loan repayments if the petition filer is unable to. As long as the repayment plan and schedule is maintained, the co-signer will be protected from any creditor debt collection activity.
Are you sure your name is included on the judgment?? As far as I see things here they cant come after you while your family member is in CH-13 repaying part of that loan but if it doesnt get paid in full they are going to come to you for the balance plus the interest they can legally add to the judgment once his CH-13 is discharged. I do not think you would be successful at removing the judgment at this point in time if your name is legally on it. What should really be done here is this: Your family member should be filing a motion in the court that granted that judgment to have it vacated based on the BK filing and it being included in CH-13.
Adding: Were your ever served??
I dont recall exactly how it all went down back then, but I did get a judgement placed against me long before the ch 13 went through. The bankruptcy took about 2 years to complete. I havent pulled my credit report since nov 2013. I do however use credit karma and they no longer show the BB&T under collections section. It is still listed under both ex and eq I know for sure. I do not think they can go after my credit report and also be on the ch 13. 
@Goat14 wrote:I dont recall exactly how it all went down back then, but I did get a judgement placed against me long before the ch 13 went through. The bankruptcy took about 2 years to complete. I havent pulled my credit report since nov 2013. I do however use credit karma and they no longer show the BB&T under collections section. It is still listed under both ex and eq I know for sure. I do not think they can go after my credit report and also be on the ch 13.
Ok, a judgment can only report for 7 yrs from date of its issue. I would verify its still on the other 2 before I sent in any dispute.. If the judgment was satisfied thru the BK then its up to the one who owns the judgment to file a satisfaction with the court, its against the law not to do so. I would check with the court and see if the satisfaction has been filed. If its been satisfied a motion to vacate needs to be filed with the court based on its being included in BK once this is granted its gone from all CRs.
Thank you gdale6, I think you have answered my questions. I will ask the family member to call their BK lawyer and ask him if BB&T is satisfied. Since BB&T is still showing on this persons on-line account overview of the BK money with the trustee, then I would presume BB&T have agreed to the terms. I will hold off on my letters to the CRAs for now. Once I find out the true answer I will be going through the vacate process hopefully soon. Wish me luck 
Thank you again, and have a good day. 