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Reaffirmation and credit score HELP Please!

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Reaffirmation and credit score HELP Please!

Filed 6.23.19, 341 meeting 7.24.19, reaffirmation of my car was completed 7.29.19....now here comes the issue.

 

My car is jointly owned by myself and my boyfriend. I needed to keep my car, and so we did. Now, my boyfriend got an alert for reaffirmation of debt on his credit and it negatively impacted his score for a lot of points with Equifax on credit karma. I am confused because I am current, and we had the debt prior, and simply kept the car? Any advise on this?

 

Thank you!

Message 1 of 5
4 REPLIES 4
Senior Contributor

Re: Reaffirmation and credit score HELP Please!

It could be because once filed for reaffirmation. The creditors don't report after filing until after DC. And online access is halted. So it's a temp thing more than likely.




My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 5

Re: Reaffirmation and credit score HELP Please!

I am sorry, but could you elaborate a little? I'm not sure I understand your response and it seems no one else has any input. I called Equifax and they are ZERO help and not on shore, so the English isn't so great. My Credit Union says they haven't heard of it dramatically decreasing the joint person's credit (not married, didn't file BK joint). I am paying on my car and have access to the online pay the day they rec the reaffirmation. 

Message 3 of 5
Valued Contributor

Re: Reaffirmation and credit score HELP Please!


@cammielewis820 wrote:

Filed 6.23.19, 341 meeting 7.24.19, reaffirmation of my car was completed 7.29.19....now here comes the issue.

 

My car is jointly owned by myself and my boyfriend. I needed to keep my car, and so we did. Now, my boyfriend got an alert for reaffirmation of debt on his credit and it negatively impacted his score for a lot of points with Equifax on credit karma. I am confused because I am current, and we had the debt prior, and simply kept the car? Any advise on this?

 

Thank you!


If the loan on the car was a joint loan, and in both names, if you and only you declared bankruptcy, he would have joint liability for the debt. It would mean he would have had to continue making payments on the car to avoid his credit being damaged. How that debt will affect your boyfriend is dependant on whether he was a co-signer or guarantor. The reaffirmation will not be in effect until the bankruptcy is discharged, so he would likely need to continue making payments until then. Until the re-affirmation is in full effect, any late payments will be reported on his credit. If he is a guarantor as opposed to a co-signer, nothing should count until it becomes uncollectable from you. At that time the bank can go after the guarantor for the entire balance of the loan. I suspect he will need to make payments on time until the re-affirmation agreement goes in effect to avoid the late payments from damaging his credit. The lein holder will likely remove the negative once the agreement is in full force, but I do not know that for sure. Better explanation here.   https://www.nolo.com/legal-encyclopedia/cosigner-liable-debt-file-bankruptcy.html

TU fico08=823 08/12/19
EX fico08=813 08/10/19
EQ fico08=826 08/04/19
EX fico09=818 08/03/19
EQ fico bankcard08=849 07/23/19
Message 4 of 5

Re: Reaffirmation and credit score HELP Please!

This is a joint loan. We actually never missed a payment. I personally make the payments. The objection to discharge is 9.23.19 and proof of claims deadline is 10.28.19. The Reaffirmation agreement was 7.29.19. When I asked my credit union, they acted like it wasn't a negative thing at all. Hence my confusion.

 

Thank you for your imput! I will look more into the link.

Message 5 of 5
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