My Cosigner is filing for bankruptcy
. Reaffirmat ion and the loan agreement
01-26-2013 10:16 AM
I am the primary borrower on an auto-loan which was cosigned by someone else. In what is the reverse of the usual, the cosigner is filling for bankruptcy. I've been doing research and most people seem to say as long someone (me) continues to make timely payments, this should not affect me negatively. However, after reviewing the terms of my loan agreement, I found one line that is of concern. It states "You will be in default if die, file for bankrupcy, become insolvent...". I'm no lawyer, but this seems that if either borrower files for bankruptcy, the loan will be in default and then can demand immediate payment of the loan. If the cosigner were to sign an reaffirmation agreement, would the credit union (from where my loan is sourced) still be able to demand immediate payment?
Thank you in advance for your input.
Starting Score: 620
Current Score: 620
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