car cosigner

[miindebt]

Another question - before we stopped paying on our credit cards at the end of Sept, 2009, I refinanced my car to get the payments to a manageable level. To get the loan, my mom had to cosign. When we file in May, 2010 or so, will she be affected by this (payments are up to date) if I keep paying on time and reaffirm the loan? The bk is something I really don't want her to know about.

[AngelinaCat]

I wish she had not co-signed, because she will learn of the bk, since she is co-owner of that car. If you file for bk and that debt is discharged, Mom will be responsible for the amount owed on the car.

Whether you reaffirm the loan or not is something that your lender will probably will determine. Some institutions will require that you reaffirm the loan no matter what. Others will allow you to simply keep making your payments--you can't be late--and you will be fine. This is called a 'ride-through'. In any case, you will have to list the loan.

Schedule three or four more free consultations and ask about this.

[DebtHater]

You mom will certainly be affected by this as she is named on a loan that your are claiming BK on whether your plan to reaffirm or not.

You only request a loan to be reaffirmed. It is up to the lender to reaffirm. If the lender decides not to reaffirm then your mom is liable for the note as your end will be discharged.

[miindebt]

I wish she wouldn't have cosigned, too, but it was the only way to get the payment to a reasonable level. I just talked to the CU that holds the loan, and the woman I talked to didn't think it was an issue as long as I reaffirmed the loan and payments were current, but she said it was a question for the attorney. I'm thinking that when I list her in the bk paperwork as the cosigner that this gets reported somehow?

[mtbc]

My understanding is that she goes on Schedule H and you should thus add her to the mailing matrix, I'm afraid. I had to add both my mother-in-law and my boss to mine!