A Co-Signor on my car loan

[jwmc1]

If you have a co-signor on a car loan and it is not late, but I file for Ch 13...can anything happen to the person that co-signs? I just don't want my filign to affect my father that co-signed for me. Thanks all

[AngelinaCat]

I don't know about a Ch13, but in our case, Ch7, my 'Hub was cosigner for a loan for an acquaintance, with no credit--ours was gold at the time, that paid faithfully for several months and then started defaulting. We started being sued for a car that we didn't even own. When we filed, that stopped the suit against us, but it proceeded against the acquaintance--as it properly should have. The debt against us was discharged and the acquaintance has a judgment for 19K.

All because 'Hub was trying to be a 'good guy' and do a favor for someone. There are more detailed versions of this story elsewhere.

How if you keep on paying and keep the payments on time, there really shouldn't be a hit against your father. But I really don't know how the credit reports will handle that. Does father know you are filing BTW? If he doesn't, and it does appear on the credit report, it would be kindness to inform him first.

Good luck.

[jwmc1]

I have spoken with him. I just don't want it to affect him as far as the trustee or someone stating that since he is the co-signor it can't be included in my monthly expenses. I am not concnered about keeping up the payments

[rrockinggramma]

I had several co signed loans included in my bk. Just make sure you list them in your petition as a co signer. They are protected by the co debtor stay and no creditor can go after them as long as your bk is active.

[NoMoreCards]

I was a co-signer on my daughters car, and filed Ch7. I had to reaffirm the car, so she could keep it without any problems.

I suspect if you reaffirm the car, things will continue as they always have. But if you do not keep the car, then they can go after the other signer.

[jwmc1]

I will be keeping the car for sure

[lrprn]

Your co-signer didn't file bankruptcy - you did. Since you intend to keep the car and continue payments to the lender after filing, your co-signer is safe. As RGG already mentioned, your automatic stay prevents the lender from going after your co-signer for payment.

Do have your father check his credit report a month or two after you file. Rarely errors occur and your bk filing may show up on his report as if he filed bk too. All he has to do is dispute it and the bk notation will be removed quickly.