what if co signer files for bk7

[JcT21]

2yrs ago my brother bought a car, i co-signed.   both our names are on the title, the loan shows on both our reports.  however,  somehow the loan ended up as me the buyer and him the co buyer.  which was fine at the time, i didnt make a big issue of it, he got his car.     so here it is he wants/needs to file chapter 7.   he was without work for several months and relied heavily on credit cards to the point where he is maxed out to the sum of around 25k.    he didnt tell me things were that bad, he got unemployment and his wife works.   i helped out with utilities, food & anything they asked.   but anyway, the loan goes through chase auto finance.  what happens if him as a co signer files bk?  will it show up on my credit report as defaulted even if the payments will continue to be made on time?  

ive contacted chase and explained the situation, they say i have to refi in my name only to get him off the loan and if he files it will show default bk even on my credit report.  how is that so, if i didnt file?    also, i contacted a bk lawyer this morning and was informed that him filing bk7 will not impact the auto loan at all as long as the payments are made on time.  they informed me that it will not show on my credit report as a bad loan, that he will have to reaffirm the debt to stay on as a co buyer.   

my question for you guys,  which one of those sounds correct?   im getting mixed resutls from online searches as well as chase customer support & bk lawyers.    car payments are current and paid 2 months ahead as of today.   at this point im wanting to believe the bk lawyer and hope they are right.

thanks for all our input!

wasnt sure which to post this, general or bk forum.  please move if necessary.

[RobertEG]

You did not either file for or discharge the debt under BK.

It would clearly be inaccurate to post any reference to a BK of another party to your credit report.

You remain as a "maker" of the account, and liable for the debt.

If they report any reference to a BK in your report, then file a dispute of its accuracy, as it has no relevance to you.

If they verify, they file a formal complaint with the CFPB, or initiate civil action for lack of a reasonable investigation of your dispute.

[RonM21]

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@RobertEG wrote:

You did not either file for or discharge the debt under BK.

It would clearly be inaccurate to post any reference to a BK of another party to your credit report.

You remain as a "maker" of the account, and liable for the debt.

If they report any reference to a BK in your report, then file a dispute of its accuracy, as it has no relevance to you.

If they verify, they file a formal complaint with the CFPB, or initiate civil action for lack of a reasonable investigation of your dispute.

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+1

You are still liable for the debt, but nothing about a BK should show up on your reports. Robert is right on.

[Pway]

When I filed for bk, nothing showed up on my mom reports and she co-signed for my car.  

[JcT21]

thanks guys for all the replies.  it helped put me at ease.

i went with my brother today to the bk lawyers office to get his bk7 started.  they did assure me nothing would happen to the auto loan as long as it will continue to be paid.  my brother must reaffirm after he files.  the lawyer said the only way this will impact me negatively is if the loan goes unpaid, then it will immediately go into collections to be repo'd.  and then it will show bad on my reports.  i have no intention of letting that happen, even if i have to pay for it myself.  

they also told me that banks often change the co-buyer and buyer positions to reflect the one with the better credit stated as the primary buyer.  he said thats why it was listed as me the buyer and not the co-signer as i originally thought i was.

thanks again for all the input, it is appreciated!!