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Car loan

orioles13
Regular Contributor

Car loan

Hello,

I filed bk7 and my 341 meeting is next week.  I have a car loan that is current.  I am trying to keep the car and my attorney doesnt think there will be a problem with that.  My car loan was cosigned about 2.5 years ago by a family member.  Paying the payment is not a problem and they are willing to pay it should anything happen that I can't.  My question is what are my options.  Do I have to reaffirm the loan or if I don't will my cosigner beable to continue the payments and keep the car.  If I reaffirm the loan the loan company will begin to report the TL line on my credit report.  Thanks for any advice.

BK7 Discharged 01/27/2015 All Scores Fico8
Transunion 720 as of 07/31/2015...Equifax 676 as of 07/31/2015,,,Experian 723 as of 07/31/2015
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2 REPLIES 2
StartingOver10
Moderator Emerita

Re: Car loan

Believe it or not, this depends upon who is financing your vehicle.

 

Most lenders will allow a 'ride through' where you continue to make your payments on time every month even during the bk. Make sure you contact the bk department of your lender to make your payment that may be due now because they can't contact you.

 

In the ride through you don't have to reaffirm.

 

Other lenders, notably FORD finance, will require a reaffirmation, Your attorney would be the best source of info regarding your specific lender.

 

I reaffirmed one of my auto loans and surrendered the other. In my reaffirmation I was able to change the interest rate, the payments and the term.  I also was able to remove the cross collateralization from the loan because it was with a CU and I had a credit card that was from the same CU in my Bk.  You want to explore all your options. For me the reaffirmation worked but I only had about 10 months of payments left on the car I reaffirmed (and lots of equity).

Message 2 of 3
Insoc
New Contributor

Re: Car loan

If you have to reaffirm, be sure your Lawyer follows through with the courts and odds are you and the co-signer will need to attend a meeting prior to discharge to have it approved in front of a Judge.  

 

Even if you reaffirm it may show on your credit report as a negative, you will need to clean up your credit reports after discharge.  I had to do this with all three, and your co-signer will also have to check their CR's to verify.

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