Car Cosigner + Questions... Your Advice Please

[dcprdiva]

hello,
my sister cosigned on a car for me right before I filed BK. i did not include the finance company in the BK filing. i just made the first payment right before my 341 mtg which was March 16. the finance company (capital one) is having a law firm monitor the account while i am in BK. they are going to send me paperwork to reaffirm the debt.

questions:

1. why do i have to reaffirm if i didn't include this in the petition?
2. how will this affect my sister's credit? what should I do, refinance in my own name or what?

your advice is appreciated!

[HHM]

You really should have considered this before filing BK.

First off, you are required under the BK code to list all known creditors (and you didn't list this one), so that is issue one. However, nothing may come of it.

It shouldn't effect your Sister's credit because she did not file BK. If you started missing payment, then it could be a problem.

Well, regarding the reaffirmation, if you don't reaffirm, they can take your car.

[dcprdiva]

I am going to sign the reaffirmation document when I get it. I have to file an amended schedule and list of creditors in the next few days. I mistakenly left off a few smaller unsecured creditors. Should I include Capital One when I file the amendment or just let it go because I am getting the reaffirmation papers?

thanks!

[HHM]

Include them as a Secured Creditor and list the car as an asset with the appropriate exemption.