New Here: Bank loan payment

[nomoneynomore]

I'm new here, as my husband and I are thinking of filing Chapter 7. I am sure I will have more questions in the future, but the most important one is this.

My step dad co-signed a loan for us a few years ago. If we file Chapter 7, is there any way we can not include this loan in the charge off? We want to keep paying on this loan as it is for his credit also.

Thank you,

[CATCHMEIFYOUCAN]

You have to list ALL debts, even a cosigned loan. My brother cosigned my car for me back in the early 90's. I was still able continue to pay the car off but I had to list it as part of my debts. Plus the Bank can go after your step father for the money (someone correct me if I'm wrong) if they find you are unable to pay for the debt.

Best of Luck, CMIYC

[nomoneynomore]

I know I need to list it as a debt, but will it reflect badly on him to be listed as a debt by me, IF I am paying as agreed?

[CATCHMEIFYOUCAN]

Hmmm, when I filed for Bk back than, I don't think it affected my brother at all, because I had only 2 months left to pay on the car. He is just a cosigner, you are the primary? I really don't know. Maybe someone will chime in here that will have an answer or a better guess.

Best Wishes, CMIYC

[lrprn]

Welcome to BK Forum NMNM - glad you found us!

I know I need to list it as a debt, but will it reflect badly on him to be listed as a debt by me, IF I am paying as agreed?

Is the loan for a secured asset like a car or house? If it is, you can reaffirm the loan yourselves and this way the creditor will not bother your father. Since he didn't file, nothing should change on his credit report either. If by mistake it does, he can get that corrected immediately by sending a letter to the credit bureau stating the entry is "not mine".

However, if the loan is unsecured, then it's very unlikely the courts will allow you to file a reaffirmation agreement for it. That means your father as the co-signer would become responsible for paying it until your case is discharged and you can voluntarily resume payments again. Check with your lawyer about this to be sure what's correct in your situation.

Just so you're aware, your dad will get a letter from the courts after you file since he will be listed as a co-signer on the loan on your forms. If you were hoping to keep your filing a secret from him, that won't be possible in this situation.