When I filed Chapter 7, I included a CitiFinancial account which I had a cosigner so I'm so obligated to pay the remaining balance to protect the cosigner. My question is though. My payment was 192.20 but because of other things, I'm only paying $100.00 to them a month. Will that still affect the cosigners credit? How does that work?
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There is no way to tell what affect your payments are having. The only way is for the co-signer to check their credit. It is really unfortunate that you have a co-signer. These CitiFinancial loans are what they call non-PMSIs which could be voided in the bankruptcy when they attach to certain personal property; property that is exempt. In any event, I can't tell you what CitiFinancial is going to do. Your more troubling problem is whether the $100/month would ever pay off that debt if interest and penalties continue to accrue.
You might want to settle with CitiFinancial. The co-signer is probably already affected.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt. -
I have some experience in this.
My dear 'Hub co-signed a car loan for an acquaintance who was down on his luck. As long as the acquaintance made his payments, in full, and in a timely fashion, everything was fine, including our credit ratings.
When the acquaintance started not making full payments, or missing them altogether, then we started getting the phone calls, and the late notices, etc. He stopped making payments altogether. We were eventually sued over this. So, yes, your co-signer's rating will be affected."To go bravely forward is to invite a miracle."
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