Auto Reaffirmation - Co Signer

[BankruptinSD]

I am just the co signer on my auto loan but the car is in my possession and I make all of the payments. The other signer who is considered the "main" signer on the loan does not reside with me and is not included anywhere else in my BK. If I am just the co-signer do I really need to include it in my BK and then try and get a reaffirmation agreement since the Creditor does not consider me the main debtor? I did speak to an attorney about it but he just gave me his opinion, not the legal answer.

Thanks!

[lrprn]

If I am just the co-signer do I really need to include it in my BK...

Yes, it is still your debt and you absolutely must include all of your debts when you file. The bk law is absolutely clear on this point.

...and then try and get a reaffirmation agreement since the Creditor does not consider me the main debtor?

When you co-signed the loan, you agreed to pay the loan in full if the other signer defaulted. Your co-signer agreed to do the same.

There is no such thing as a "main debtor" when both of you agreed to be equally responsible for paying off the loan. Who pays the loan and uses the car doesn't matter.

If you file bankruptcy, that makes your co-signer fully responsible for paying off the loan in full. You can still continue to make the payments after you file, but you no longer have a legal obligation to repay the loan. You can sign a reaffirmation agreement with the lender, but that just leaves you a co-signer the same as you are now.

I did speak to an attorney about it but he just gave me his opinion, not the legal answer.

His opinion is likely closer to the "legal answer" than any non-lawyer's is going to be here.

What was the attorney's opinion?

[BankruptinSD]

The attorney just said that I should go ahead and include it in the BK in case the other debtor tries to stick me with the loan later on down the road.

My concern is that I was not planning on telling my co debtor about the BK right away, but now that I found out I have to include their name and address in the actual BK and that it might affect their credit also, I am worried. If I ask to reaffirm the car loan, does anybody know if they also will have to sign the agreement? I ask because they are currently overseas and will not be returning for another 5 months.

[lrprn]

The attorney just said that I should go ahead and include it in the BK in case the other debtor tries to stick me with the loan later on down the road.

Your lawyer is giving you sound legal advice. However, if you sign a reaffirmation agreement, then after your bankruptcy is over, you'll still be responsible for paying back the loan the same as your co-signer.

My concern is that I was not planning on telling my co debtor about the BK right away, but now that I found out I have to include their name and address in the actual BK and that it might affect their credit also, I am worried.

You are filing bankruptcy, not your co-signer. It will not affect his/her credit. Sometimes the credit agencies make a mistake with co-signers and list them as filed as well. All your co-signer has to do is dispute it - the credit agency will remove it immediately.

If I ask to reaffirm the car loan, does anybody know if they also will have to sign the agreement? I ask because they are currently overseas and will not be returning for another 5 months.

Again, only you are filing bankruptcy, not your co-signer. The only persons who have to sign the reaffirmation agreement are you, your lawyer, and the creditor/lender. If you aren't using a lawyer (and given the complexity of your situation, I hope you are), then the judge has to review your reaffirmation agreement and agree to it to ensure you aren't being taken advantage of by your lender.

[BankruptinSD]

The information you have given thus far has been incredibly helpful, thank you!

Again, only you are filing bankruptcy, not your co-signer. The only persons who have to sign the reaffirmation agreement are you, your lawyer, and the creditor/lender. If you aren't using a lawyer (and given the complexity of your situation, I hope you are), then the judge has to review your reaffirmation agreement and agree to it to ensure you aren't being taken advantage of by your lender.

I was actually planning on filing pro se since I do not have a lot of debt, I fall well below the median income and I thought my case was fairly simple; not to mention the fact that I am a single parent and trying to come up with the $1500.00 will be next to impossible. I bought the NOLO book and have read though all of the pertinent sections and thought that I would be able to handle it. Do you really believe that my case sounds too complex to do it pro se?