reaffirming a debt and a co-signer

[jtolman]

My wife's ex-husband has filed for bk (Chapt. 7). The only joint debt still existing between him and my wife subject to the bk is an auto loan. However, his is reaffirming this debt so he can keep the truck.

My question is, once he reaffirms, is my wife still on the hook as a co-signer or does the reaffirmation have the same effect as a refinance in the ex's own name?

Any comments/help is appreciated.

J

[HHM]

Nope, she is still on the hook.

[jtolman]

Thanks for clearing that up. One other question: as a cosigner does she have any remedy against him for damage to her credit due to his non-payment prior to filing his petition?

[Pinktiger]

What kind of remedy? When you cosign for somebody, you do it knowing that you are responsible for payment should they not pay. This is not fraud. It is just a fact.
I can see why you want to go punch this guy's lights out, but the fact is, she was his wife and signed on the vehicle.
The fact that her credit may be sad, but it is just part of the deal.
She can state on her credit reports that it was a divorce situation. There are places on the reports to make statements regarding illness and divorce.

[HHM]

There may be a remedy contained in the Decree of Divorce. A well drafted decree will provide for indemnity provisions when one spouse assumes a joint debt. Thus, she could conceivable go back into Divorce court to get a judgment for the amount your wife is liable on the car (but if he declared bankruptcy, there may be little if anything to get to satisfy the judgment).

Aside from that, I don't think she would have any other remedy for the reasons pinktiger explained.

[jtolman]

Thanks for the info.