QUESTION
If I claimed chapter 7 bankruptcy and was current on payments, would it affect the co signer's credit?
Asked on Apr 05th, 2012 on Bankruptcy - Colorado
More details to this question:
If I was to claim chapter 7 and someone co-signed a loan for me and if I continued to make payments on that loan and kept it current without including it in the bankruptcy, would it affect the co-signer's credit?
12 ANSWERS
You must list all debt on your bankruptcy schedules including any debt that you intend to repay. Make sure the creditor knows your intentions right away to repay the debt. The courts will generally not approve reaffirmation agreements on unsecured cosigned debt- but most creditors will continue to accept your payments.
Answered on Apr 11th, 2012 at 4:33 PM
That depends on the type of loan it is and what the loan is for. Is it secured by collateral or unsecured.
Answered on Apr 09th, 2012 at 9:04 PM
Your bankruptcy should not affect a co-signer's credit.
Answered on Apr 09th, 2012 at 8:55 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Co-signers are unaffected if the debt is paid on its normal terms.
Answered on Apr 09th, 2012 at 4:18 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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From what you have stated, it should not affect the co-debtor's credit score if all payments are made on time.
Answered on Apr 09th, 2012 at 12:54 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It ought not to.
Answered on Apr 09th, 2012 at 12:33 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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All of your debt should have been listed in your bankruptcy. Even if you did not list the debt, creditors usually find out. The debt may show included in bankruptcy on your credit even if you continue to pay. The co-signer's credit report may show that the joint debtor filed bankruptcy and this could have an effect on that person's credit.
Answered on Apr 09th, 2012 at 12:09 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Whether you can qualify for a 7 as opposed to 13 is a question. There is also an issue of the contract with the creditor.
Answered on Apr 09th, 2012 at 12:05 PM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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If you want to keep that loan you will have to sign a reaffirmation agreement with that creditor. As long as you don't miss any payments, the cosigner should not have any problems with his credit in the future.
Answered on Apr 09th, 2012 at 11:01 AM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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Not as long as the debt stays current.
Answered on Apr 06th, 2012 at 6:19 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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It won't go on their credit report, but if it is a credit card or a line of credit it will probably be closed. Disclaimer: Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract.
Answered on Apr 06th, 2012 at 6:18 PM
Daniel James Wilson
You must list all assets and debts, so this debt will have to be scheduled.
Answered on Apr 06th, 2012 at 6:14 PM