QUESTION
If my parents cosign on a home loan, and they declare bankruptcy, will my credit be affected? How?
Asked on Jul 02nd, 2015 on Bankruptcy - Illinois
More details to this question:
If my parents cosign on a home loan, and they declare bankruptcy, will my credit be affected?
5 ANSWERS
It will have no affect on your credit as long as you stay current with the mortgage payments.
Answered on Jul 06th, 2015 at 3:36 PM
To the extent you rely on the continued reports of prompt payment of this mortgage to keep your credit score high, your parents bankruptcy will affect your credit. Most mortgage companies will stop reporting payments to both the bankrupt debtor and the cosigner after a bankruptcy is filed.
Answered on Jul 06th, 2015 at 11:19 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, your credit is based on how you pay your obligations.
Answered on Jul 03rd, 2015 at 5:12 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No as long as you pay.
Answered on Jul 02nd, 2015 at 5:59 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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The bankruptcy can appear on either credit report, yes. Even if only one person on the loan files, it will show that a bankruptcy was filed. You'd have to explain that you didn't file a bankruptcy, that the other person on the loan did.
Answered on Jul 02nd, 2015 at 3:24 PM