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Planning BK7, Deciding if I should Reaffirm Auto that has Cosigner

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Member

Planning BK7, Deciding if I should Reaffirm Auto that has Cosigner

So I'm planning on filling BK7 and am concerned about my auto loan with NMAC. I have a cosigner and I don't want to do anything that would affect their credit. I was thinking that reaffirming would be the best option, but have read that some companies will let you stay and pay without reaffirming. I could not find any information on how that option affects a cosigner. If NMAC allowed me to stay and pay without reaffirming, how would that affect my cosigners credit?
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Super Contributor

Re: Planning BK7, Deciding if I should Reaffirm Auto that has Cosigner

If you file for bankruptcy and reaffirm on the car loan, as long as you continue to make timely payments to the creditor your co-signer will not be affected in any way by your bankruptcy. A reaffirmation agreement in a Chapter 7 bankruptcy reaffirms the debtor's personal liability and has the same legal effect as if there was no bankruptcy regarding that debt. Your co-signer is at risk if the debt is not paid, therefore it really doesn't matter if it is reaffirmed or not, as long as it is paid it should not affect your co-signers credit. But if payments aren't made. Then there will be a problem. And may fall on your co-signers shoulders to pay since they didnt file BK.

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Super Contributor

Re: Planning BK7, Deciding if I should Reaffirm Auto that has Cosigner

If possible, don’t reaffirm the debt.
Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
755 EQ FICO 12/2019
750 TU FICO 12/2019
743 EX FICO 12/2019
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