Last minute question..

[MizErin]

I officially filed for Chapter 7 bankruptcy last night, but I thought of something.. I filed on my own, but my husband is a co-debtor on my vehicle. I am re-affirming the vehicle, but since we're both on the hook for the debt, will something go on his credit that says he's involved in a bankruptcy? I only ask because he is in the process of buying our family a home and we don't need anything relating to my bankruptcy showing up on anything of his. Thanks for the help!

[keepmine]

No. Years ago, the CRA's settled a classaction lawsuit on that very issue. The non filing debtor won't have a bk attached to his credit file.
However, if you're late on payments, those can show on the the cosigners file.

[MizErin]

I've never been late with a payment, and even throughout this entire process of deciding to file and paying my lawyer off in order to file, I kept my vehicle current. It's the only obligation/bill that I'm current on. I have also heard that the trustee can decide not to reaffirm, even if I want to, if it's not the best for my budget. What would happen in the case that I'm told that I can't keep my vehicle. I am pretty upside down and owe quite a bit more than it's worth (part of my problems that I plan to change with bankruptcy). I'd hate anything I do, affect my husband and our chance at a home. With a bankruptcy on my credit now, I fear that we won't be able to rent anything for a while.

[LadyInTheRed]

The trustee has nothing to do with the reaffirmation. Your attorney must sign a declaration stating whether or not reaffirming the vehicle is a hardship. If he says it is a hardship, then the judge has to approve the reaffirmation. If I were you, I would hope your attorney says reaffirmation is a hardship and the judge doesn't approve the reaffirmation so that if you have problems making payments later, or you are in an accident and the car is totaled, you can stop making payments and let the lender repossess the car without worrying about a deficiency judgment.

Actually, if it were me, I wouldn't sign a reaffirmation agreement at all on a car that isn't worth what I owe.

Nobody will tell you can't keep your vehicle if the reaffirmation of the loan is denied, unless you miss a payment.

As keepmine said, the creditor cannot report your bankruptcy on your husband's credit report.

[bcohen]

I am pretty upside down and owe quite a bit more than it's worth (part of my problems that I plan to change with bankruptcy). I'd hate anything I do, affect my husband and our chance at a home. With a bankruptcy on my credit now, I fear that we won't be able to rent anything for a while.

Huh? It is never in your interest to reaffirm a car loan where you are more than $1000 "underwater", because those same thousands of dollars of negative equity could be used to simply buy a cheap car without a loan. Likewise, I have never heard of needing good credit to rent a home; only to buy one. Around here, most property management companies do not care about credit scores--all they care about is that the prospective tenant has no past evictions/debts owed to other landlords and makes the required amount of income.

[AngelinaCat]

The only reason we reaffirmed our car loan, was that it was a condition our CU insisted on if we wanted to remain members, which 'Hub did. He had joined in 1964. In our case, we weren't underwater, and only had about ten months more to pay on it.