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Posted in Auto Loans
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banegurl003

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auto loan with a cosigner being put in bankruptcy chapter 13
I have a cosigner on a auto loan if I put it in my bankruptcy for chapter 13 will it affect my cosigner credit?

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Yes it will.  When the cosigner agreed to do so, they virtually guaranteed that the car loan payments would be repaid by you at the agreed interest rate. Under Chapter 13, the balance is recalculated at a lower rate and the interest drops, so the car is NOT being repaid as originally agreed.  I once did a Chapter 13.  While not as bad as a Chapter 7, it will still hurt your cosigner's credit score.

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