Filing Chapter 7- Co-signer question
My hubby is filing, but my father is co-signer on my car. We do not plan to include it in the BK, as it is in good standing and we are filing it as ''exempt''. But the attorney says I still have to include and he ''thinks'' he will not be affected! I do not want my father to be a affected. Will he?
Re: Filing Chapter 7- Co-signer question
You will be asked to sign a reaffirmation agreement, perhaps under the same terms as the old agreement, or at a reduced rate. If signed, this will become a new contract that will not be dischargeable in the bankruptcy. If you stop making payments at some point, the lender could repossess the car -and- come after your husband and your father for the remainder (the "deficiency").
Since you're current on your payments, it should not affect your father's credit.
All debts, including the car loan, must be listed in the bankruptcy.
