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Rebuilding and SO BK

Valued Member

Rebuilding and SO BK

Hi All, 

 

Going to give you a little backstory to see if you can help me out... I'm discharged from my Chapter 7 that  included about ~100k in auto loans, credit cards and collection accounts from previous medical bills, insurance bills and etc... I have a written rebuilding plan that is going splended already recieved CreditOne increase to $700 and just approved for Capital One Plat for $300 and enrolled in the credit steps program. (Yay!) My previous car was included in my chapter 7, so I needed to replace after discharge. My SO cosigned on this current auto loan for me its for a 2014 Corolla and we are financed for $14,000 at 21% (yikes! I know, but will be refinancing with NFCU in about 6 months after perfect payment history). His current credit situation is a disaster! 2 auto loans that he has defaulted on and both cars have been repo'd. Credit Cards with less than perfect history all currently maxed out. We've stopped paying/using them to prepare him to file Chapter 7 in July. However, he's already wanting to look for cars in the $15k price range. 

 

I feel like since I'm rebuilding and it's going pretty well, I know he will need a cosigner on the loan because of his previous history and including a BK will more than likely not be favorable to him in the terms of lending. I'm worried that if I cosign that he will default and I'll be on the hook for not 1 but 2 auto loans... He's a little immature on finances, he has told me over and over that he doesnt care if he's always "car poor" pretty much meaning that he wouldnt mind having an auto loan for the rest of his life; difference is I do not want to have auto loans all of my life, I really like the car I'm in now and plan on keeping it for a while after it's paid off. I'm just worried that if I put myself in this perdiciment that I'm going to end up with the short end of the stick. I've tried to convince him to get a decent car with cash (I have about $5,000 in emergency fund money saved) however, he doesnt want to do that. I'm just lost on what I should do... Advice?

Chapter 7 Filed 1/19/2018
Chapter 7 Discharge 4/30/2018
Starting FICO: 582EQ,528TU,532EX
Current FICO Scores: 630EQ,615TU,605EX
Capital One Plat: $300SL
CreditOne: $500SL/$700 Current
Auto Loan: CPS 14.5k @22%
NFCU Secured Loan $1500/12 months
FedLoan Servicing- Always Positive@ $5k
Navy Federal nRewards- $2000CL Secured
Currently Gardening until 12/2018
Message 1 of 9
8 REPLIES
Regular Contributor

Re: Rebuilding and SO BK

You have answered your own question.  Hold steadfast!

Message 2 of 9
Frequent Contributor

Re: Rebuilding and SO BK

I'm certain there are people out there with more expertise on/experience with this than I have, but I would be very wary of your SO filing for bankruptcy with him as a cosigner on your auto loan.

EX 8: Jan 2018 - 546 | EQ 8: Jan 2018 - 571 | TU 8: Jan 2018 - 566
EX 8: Jul 2018 - 572 | EQ 8: Jul 2018 - 573 | TU 8: Jul 2018 - 578
TCL: $1,350 | AAoA: 7.9 yrs (I can thank my student loans for this) | Util: 63% (high due to charge-offs)
Cleaning up and rebuilding after a long hiatus from credit
Message 3 of 9
Super Contributor

Re: Rebuilding and SO BK

IMHO I don't think you are in a good position to do that now.  It would better for both of you to share the car and for you to get your car refied in your name as soon as you can.  Later on when you are in a better position to help him, then you could if you want to.  He needs to see how serious his position is and whether he can afford the luxury of a new vehicle.

06/23/2018: FICO 830 EQ 827 TU 824 EX
Message 4 of 9
Valued Member

Re: Rebuilding and SO BK

I’m the primary borrower on the loan. It’s through Consumer Porfolio Services. All the research I’ve done (a ton! Haha) has basically said that I’ll be on the hook 100% for the loan. Totally okay with that. Shouldn’t cause any AA in regards to the loan. If anyone else has advice/had any type of AA happen let me know and I’ll see if I can refi before he files.
Chapter 7 Filed 1/19/2018
Chapter 7 Discharge 4/30/2018
Starting FICO: 582EQ,528TU,532EX
Current FICO Scores: 630EQ,615TU,605EX
Capital One Plat: $300SL
CreditOne: $500SL/$700 Current
Auto Loan: CPS 14.5k @22%
NFCU Secured Loan $1500/12 months
FedLoan Servicing- Always Positive@ $5k
Navy Federal nRewards- $2000CL Secured
Currently Gardening until 12/2018
Message 5 of 9
Frequent Contributor

Re: Rebuilding and SO BK


@zledfordwrote:

His current credit situation is a disaster!

 

2 auto loans that he has defaulted on and both cars have been repo'd.

 

Credit Cards with less than perfect history all currently maxed out.

 

I'm worried that if I cosign that he will default and I'll be on the hook for not 1 but 2 auto loans...

 

He's a little immature on finances, he has told me over and over that he doesnt care if he's always "car poor"

 

I've tried to convince him to get a decent car with cash (I have about $5,000 in emergency fund money saved) however, he doesnt want to do that.


Sounds like you are in two different places regarding personal finance and frugality. Has he made a rebuild plan for post-BK? What steps does he plan to take so he never gets his ox in the mire again (to the extent it's reasonably preventable)?

EX 8: Jan 2018 - 546 | EQ 8: Jan 2018 - 571 | TU 8: Jan 2018 - 566
EX 8: Jul 2018 - 572 | EQ 8: Jul 2018 - 573 | TU 8: Jul 2018 - 578
TCL: $1,350 | AAoA: 7.9 yrs (I can thank my student loans for this) | Util: 63% (high due to charge-offs)
Cleaning up and rebuilding after a long hiatus from credit
Message 6 of 9
Frequent Contributor

Re: Rebuilding and SO BK


@zledfordwrote:
I’m the primary borrower on the loan. It’s through Consumer Porfolio Services. All the research I’ve done (a ton! Haha) has basically said that I’ll be on the hook 100% for the loan. Totally okay with that. Shouldn’t cause any AA in regards to the loan. If anyone else has advice/had any type of AA happen let me know and I’ll see if I can refi before he files.

I would post this question in the Rebuilding section as there are people who frequent there with more expertise in this area. You could be in a world of hurt if this goes wrong.

EX 8: Jan 2018 - 546 | EQ 8: Jan 2018 - 571 | TU 8: Jan 2018 - 566
EX 8: Jul 2018 - 572 | EQ 8: Jul 2018 - 573 | TU 8: Jul 2018 - 578
TCL: $1,350 | AAoA: 7.9 yrs (I can thank my student loans for this) | Util: 63% (high due to charge-offs)
Cleaning up and rebuilding after a long hiatus from credit
Message 7 of 9
Valued Contributor

Re: Rebuilding and SO BK

You should listen to your heart.   You should take care of your credit and your rebuild.   It sounds like he's not yet ready to make the kinds of changes he needs to make going forward.

 

Kudos to you for buying a used car at a reasonable price (15K-ish).   Most fools get their discharge and run out and buy a 50K car at 21% interest financed over 84 months.

 

I would seriously disentangle from your fiancee's finances.   There are lots of couples who keep their money and credit completely separate from each other.   It doesn't mean they love their partner any less.

 

Listen to your heart.  Listen.   Listen.   Listen.

FICO 08: EX-698, EQ-732, TU-705 - [8/2/2018]
FICO 09: EX-748, EQ-775, TU-748 (8/2/2018)
Mortgage: EX-737, EQ-712, TU-748 - [8/2/2018]
NFCU NavChk 15K | NFCU Visa 6.99% 31.5K | CapOne Venture Visa 50K | Barclay Aviator MC 9.5K | Discover It 24.4K | Alliant 3% Cash Back Visa 25K | Penfed Promise 20.5K | BECU Visa 10K | BECU CLOC 10K | DCU Visa 10K | BofA AK Air Visa 5K | Citibank secured 1K | Amazon Prime 10K
221.9K Total Revolving.
Share Secure Loan Alliant $94 Balance/$15,000
BK 7 Filed 8/23/2013 - Discharged 11/27/2013.
Message 8 of 9
Community Leader
Super Contributor

Re: Rebuilding and SO BK

Heading into a bk7 without consciously deciding to not have it happen again or at least try learning from it is a sign for future disaster in my humble opinion. Bk is something we should all try and avoid but it happens , happened to me but not a day goes by with my credit that that experience doesnt remind me what to try and avoid. Wish you the best on your relationship and hope you can both come out betterSmiley Happy




Message 9 of 9