Car loan cosignor filing ch. 7.... HELP!

[eleceng]

My question involves bankruptcy in the state of: Massachusetts

Hi,

two years ago my father co-signed for my car loan. I was the primary borrower. The car seller registered the car under both of our names.

I have never skipped a payment and never have been late.

My father is now filing for Ch. 7 bankruptcy and I want to know if this will affect my credit rating?

Thanks in advance

[NoMoreRed]

It shouldn't affect your credit, however, if he is the cosigner it could affect whether or not you can keep the car. You may want to see if you can refi or get the car loan in your name only since you have a payment history now with the bank that the loan is with. You may want to have your father ask his BK attorney specifically about your situation or go have a consultation with an attorney.

Not trying to scare you, but just make sure you cover all of your bases. If you have a good payment history with the bank then they will probably work with you. Good Luck

[StartingOver08]

I was the co-signor on my adult daughter's car loan too. About 3 months before filing, my daughter refinanced the car for the exact amount outstanding on the loan into her name alone with a different lender.

In my BK, I provided all of the information to the Trustee - the original loan showing both of us and the refinance. I also provided all the documentation showing that my daughter actually made the payments throughout the time of her ownership from the beginning, she paid the insurance, maintained the car and lived in a different residence. This last point seemed to be important to the Trustee for some reason. The Trustee allowed the transaction. The lien was perfected by her lender prior to my filing. Also, there was no equity in the car.

When the trustee asked why we did the refinance, I explained I did not want the tradeline to show as iib on her report. Although my daughters' CR should not reflect iib, it is common for the creditor to make mistakes and for it to be difficult to remove. I did not want my daughters credit to suffer because of my bankruptcy. The Trustee understood.

Talk to your dad's attorney, see if you can do something similar.