Question about co-signer on auto loan / reaffirm

[foolishpast]

A year ago I bought my daughter a car. We put her on the loan as a co-signer to start building her credit. Now I am filing BK. My attorney tells me that if I request to reaffirm her car, they may not let me reaffirm MY car (which I absolutely must). He put in the paperwork that I am going to "surrender" the vehicle. He said not to worry though because as long as my daughter is making the payment they won't ask for the car back or do anything. I'm so worried about this. Has anyone experienced something like this? Also, he assures me nothing about my BK is going to show up on her credit report (I don't want her to know I'm doing this). Has anyone else had a co-signer that kept the loan without any problem and without knowing?

[Rick9972]

Just so I am clear here: Did you Co-sign her loan or did she Co-sign your loan?

If she Co-signed your loan, she will know about your BK within a week of filing.

[foolishpast]

I am the primary on the loan. She is secondary. I know she will be sent a notice from the company.

[Floridagail]

I had a cosignor on the loan for my car. I kept payments current . I got the paperwork to confirm the car, however my attorney did not recommend me confirming it. and also stated that the trustee may not approve it, ( then I would just keep paying car payment ) I stated on paperwork it was hardship for me however I had co=signer and he was going to help out with payment since his name is on it too. So it went thru fine.
However GMAC immediately stop my internet access to my account once I filed. I had to make a payment over phone. Until after my confirmation paperwork was done. We paid the car off after the 341 meeting . Now My credit report shows bad credit bankrupty zero balance. And I paid it off and was never late for 6 yrs.

[foolishpast]

I guess my biggest worry is that he marked the box saying I'm going to surrender the vehicle. There is a small amount of equity in the car. I have no problem reaffirming it but I also need to reaffirm my vehicle and he doesn't think they'll let me do both.

[justbroke]

As far as you are concerned you "are" surrendering your ownership in the vehicle back to the creditor. How they deal with it is another story.

You only have three options. Redeem, which you probably cant' do because of the cost. Reaffirm, which a judge won't let you do if it's a hardship (and it sounds like it is). Or, surrender, surrendering your interest in the automobile.

What the creditor will do is collect the debt from the co-signer. How they deal with the title (re-title or leave it the same), will be up to the individual creditor. It will show on your credit report as IIB (Included in Bankruptcy) or some other discharge indicator. I don't know how it would show on the co-signer/co-debtor's report, but should be able to fix that.