Question about Bankruptcy and Car Loan

[jrock2112]

I have an auto loan with my dad as a co signor. I have been making all the payments on time for a year now. I decided I need to file bankruptcy due to a job loss. Would this affect my car loan or my father's credit? I want to keep the car and keep paying on it.

Thank you!!!!

 

[OHRoadwarrior]

Whether you file bankruptcy or not dad is going to be stuck paying for the car if you do not reaffirm the debt.

 

[LdiJ]

I have an auto loan with my dad as a co signor. I have been making all the payments on time for a year now. I decided I need to file bankruptcy due to a job loss. Would this affect my car loan or my father's credit? I want to keep the car and keep paying on it.

Thank you!!!!

You will need to specifically reaffirm the debt as part of your bankruptcy. Otherwise it would impact your father.

 

[bigun]

You don't necessarily need to reaffirm in order to keep the car. A lot depends on the state of the law in your circuit. In many circuits, judges have ruled all you need to is offer to reaffirm. If the reaffirmation is denied, you've done what the law required and you keep the car as long as payments are current. As a result, many lawyers refuse to sign a reaffirmation agreement since they don't bellieve it's in the best interest of there client.

Ask your lawyer how it's handled in your district.

Your bk should not show up on your fathers credit report.