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Posted in Bankruptcy
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doctorswife2

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0 People Helped
Cosigner but borrower is filing bankruptcy
The borrower wants to file bankruptcy. Will that affect my credit score even though I'm not filing? I can still pay the car payments on time.

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Top Contributor
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555 People Helped

Yes, whatever happenes to the account(s) you co-signed for will be on your credit profiles as well, both negatives and positives... If you are willing to pay it? I do believe but don't quote me on it, it can be excluded from bankruptcy fillings, by continue paying on it, consulting with a attorney or type of consumer credit advactes (free or low-cost) would be the best course of action. If he/she are consider BK? Then that account could already be delinquent. 

Top Contributor
935 Contributions
132 People Helped

Do not allow the person you co-signed to include the account in the bankrupty.  It does not have to be included.    You will not want the account to be marked closed/bankrupty and the amount due in full today.   The only way to protect your credit is for it not to be included and it does not have to be.   As the co-signer, the person should even be including you in the bankrupty proceedings as he is/would be indebted to you.   If he doesn't include you, and you have to pay off the loan, you can then take action against him/her to for the amount you will be out as the co-signor.  You are an unsecured debt.  As with any creditor, you have the right to appear and object and you can ensure the car is not included and/or you can have the car assigned to you by the court along with that debt.   Absent this, you make the payments and in the end, the auto title still goes to the person who did not pay.   If the auto is assigned to you, you would then have the legal right to sell it to pay off the loan if you desire.  As the co-signer, you have no rights except the right to make payment if they do not.

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