Reaffirm Car loan I have a cosigner

[Crazylove122]

I'm just starting the process to file for chapter 7 I have a car loan that is up to date on payments and has a cosigner. To reaffirm the car loan will the cosigner have to do anything? Will any of this affect her credit? I read some threads that recommend not reaffirming and just continuing to pay is that possible with a cosigner since they will still be responsible for the loan?

Thanks for any help.

[tobee43]

welcome to the forum!! if you intend to keep the car they i would re-affirm the car. what i would do, if you have a co-signer and you continue to make timely payment through this process there will be no problems. many people re-affirm their cars because they need to work! if your atty says do not pay them, i would give the money to the co-signer and have them pay to keep up the payments. this is very doubtful though, we own our car out right when filed, but just like you need your lights and water on, you need your car. you and your co-signer should be good again, but, continue timely payment.

[AngelinaCat]

Since you have a co-signer, I would reaffirm to protect your co-signer.

Normally I would not advise this. However, read on:

My 'Hub co-signed a car loan for an acquaintance, down on his luck.

All was well until acquaintance defaulted. Long story short, the car was repossessed and sold at auction. We were sued for the difference between what the original loan was for and what the car fetched at auction.

We filed BK, we were going to anyway, Acquaintance just egged it along by not keeping up his end of the bargain.

We were discharged of this co-signed debt. Acquaintance did not file, though we advised him to. He now has the judgment against his name for $13K.

Moral of this story: Do not ever, NOT EVER CO-SIGN A LOAN FOR ANYONE!!!!! No matter who it is, even if it is one of your relatives. In fact the BEST way to sow discord amongst family members is to involve them in MONEY matters.

That includes your friends!!!