Will Personally Guaranteed LLC Truck Loan Show On Credit Report

[ToughSpot]

Hi All,

This is my first post. I have spent the better part of two weeks reading everything I can. I can not express how thankful I am to all of you trailblazers.

Question:

I have a Ford pickup financed by Ford Credit through my LLC. I had to personally guarantee the loan which is currently up to date and the loan does not currently appear at all on my personal credit report.

My understanding is the CH7 will void the personal guarantee. Since the loan will be up to date as of the discharge is there any chance of the loan later appearing on my personal report if the LLC were to default or have the truck repo'd?

Thank You

[awayalways]

in my experience, the lender would have to sue you and get a judgement against you in order for anything to be reported on your personal credit report. but if you bk first, they cannot come after you later or report anthing on your personal credit report.

[whipster1]

They could conceivably repo from the LLC since the terms of the loan contract have been violated by not having a guarantor. Also if your LLC has assets or income the trustee and UST will be very interested.

[myid4u2c]

I disagree with awayalways. This is an account that you have/had legal responsibility for until you filed C7. I had a business with about 12 PG’s and while everything was good they did not report anything, however when it went bad only a couple did. If you keep the loan up I would not expect anything reported. If you do not keep it up you have a chance they will not report it.

[HHM]

You can expect that once you file BK or otherwise default, the account will appear on your credit report and show as included in BK. I would say there is almost a near certainty that it will appear on your credit report.

[backtoschool]

If it was personally guaranteed, it will most likely show up on the credit report as IIB.

[OhioFiler]

If it was personally guaranteed, it will most likely show up on the credit report as IIB.

I have to agree. Once the LLC defaults on the loan the debt becomes the liability of the guarantor. Even if the guarantor files BK the debt should and will transfer to his personal credit report.

[awayalways]

....hmmm, I must be one of the lucky ones then because my personally guaranteed corporate card never reported anything good or bad before or after bankruptcy.

[backtoschool]

....hmmm, I must be one of the lucky ones then because my personally guaranteed corporate card never reported anything good or bad before or after bankruptcy.

This thread is about a truck loan.

[awayalways]

"in my experience" in addition to my PG corporate card default I also had a corporate PG vehicle repo'd and a corporate PG realestate foreclosure too. all were included in my BK. the lender for the PG realestate sued me for the deficiency and won a judgement against me personally. but absolutely nothing good or bad has been reported on my personal credit report for these. but given other posters experience(s), it looks like the OP could/might have a different outcome.

[ToughSpot]

Can't belive what Ford told me

I called today to tell them I was going to give the truck back and not going to make any more payments. I even offered to bring it wherever they wanted me to.

So the guy tells me that I'm only a couple payments behind. "Why don't you take another couple weeks and try to sell on your own."

I pretty much owe what it's worth just need to find the right buyer. I have it listed online in a few places. If I can get to where the gap between the sell price and payoff is $500 or less I am thinking I may pay the difference to not have the repo in my file.

Wish me luck.