Question about bankruptcy on a joint account

[kh1974]

I am considering filing bankruptcy but I have a car that is in someone else's name and I'm the co-signer. I make all the payments and have all use of the vehicle. Can anyone tell me if I could file on this without it hurting the other persons credit. I know I could do this if I were the main one on the account but I'm unsure if I can being that I am the co-signer.

[vavirgogyrl]

It's a 50/50 chance that it may show up on the other person's credit report. Only because the account would be involved in a bankruptcy. The finance company may push for you to sign a reaffirmation agreement in order to protect the other person. Signing a reaff is not mandatory. A reaff would be considered a new contract (debt) after bankruptcy. So if the vehicle was ever repossessed you would still be responsible should there be a deficiency after the car has been auctioned. Without signing a reaff you will still be under bankruptcy protection. Which means if it's auctioned they can not come after you for the deficiency. All you have to do is continue making the payments the way you have been doing. It is possible they may stop sending statements to you. If that happens just keep a record of your payments and call them periodically to check on the account. If you have an attorney represent you in the bankruptcy you can ask your attorney to write the finance company to ask if they will continue to send your statements. Some companies may oblige and some make stick to their procedures.

[cherisse]

Gaurantor on my auto loan

I appreciate the information in this posting. I was looking for answers to the same question. I was trying to hold back from filing ch.7 to avoid screwing up my grandmother who had graciously helped me out by co-signing. I am glad that I can give her some reassurance that there are ways to handling this situation.

[smokey_27_00]

If I am on an account with another person, and I file bancrutcy, is the other person still held responsible for that account or is it dissolved?

[HRx]

If I am on an account with another person, and I file bancrutcy, is the other person still held responsible for that account or is it dissolved?

Do you mean some form of credit account? If you have a joint credit account with someone and you file BK, they will get gigged too.

Good Luck!

[gloworm]

new to all this bk stuff....not sure what i can do about keeping my spouse out of my predicament...i've gotten confusing information about community property debt, etc. i don't know where to start.....