@1stCarBuyer wrote:
I tried to sign into my account to pay my auto loan and my account was disabled. I called and was told that the co-signer on my loan filed bankruptcy. I’m checked Credit Karma today and my score had dropped from 643 to 574(I’m bummed because I’ve been working so hard to build it up to buy a house) and my auto loan is no longer on my credit report. Idk what to do and this comes after a 4 week stint in the hospital so for the first time since I’ve had the loan I’m behind.
What are my options? Can/should I still pay on the loan? Will the car get repossessed? Can I buy out? Am I screwed?
Absolutely you should keep paying.
You should call them up and tell them that you didn't declare bankruptcy and that you will be continuing to make the payments.
If your guarantor is going to file for bankruptcy, your best option is to ask to have them removed from the loan account. Lenders may allow it if you’ve been making your payments and have the resources to continue doing so. You may also be able to find a new guarantor or cosigner. If your cosigner is going to file for bankruptcy, you’ll be responsible for the entire loan. If you don’t make the payments, your credit score will suffer. Unfortunately, lenders generally won’t remove cosigners from a loan account. You’ll have to work with your cosigner to make sure you don’t suffer for the sake of their bankruptcy.
If your co-signer files for bankruptcy or is no longer able to pay, make sure to monitor your credit report carefully. If the state of your co-signer affects your credit score, despite the fact that you have been paying your loans off in a timely manner and have a plan to continue to do so, you may be able to file a dispute with the credit rating agencies and have this corrected.
