Re: My Cosigner is filing for bankruptcy
. Reaffirmat ion and the loan agreement
01-26-2013 12:02 PM
I am not sure if it will affect your credit report negatively or not. If it was a joint account, I would think that the filing of bankruptcy of one person would affect the other but I am not sure about consigning. I would call the auto loan company and ask just to be sure as it could also be a factor of differing policies. I believe they would definitely come after you next if you weren't planning to make payments since you are fair game. You would only need to reaffirm if the account on your credit report ended up included in BK. Honestly, I think life will go on as usual as you are primary person required to make payments. Just realize that if you default and can't pay, the loan company will not go after the cosigner because they won't be able to legally so all the negativity of failure to pay would fall in your court...it would be as if you purchased the car on your own without a cosigner.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Last App: 4/5/13 Gardening until July 2014