Auto Loan and cosigner

[jodie3134]

We are planning on filing Chapter 7 next week. I have a lease for a Honda Accord that my father cosigned on. I plan on keeping this car after bk and reaffirming if they offer it. As long as I remain current on the lease, will my bk have any impact on my dads credit score? Our attorney said No, but I'm looking for people to back that up This is my one paranoia about filing.

[LadyInTheRed]

As long as you keep current on the lease or your father keeps it current if you fail to, your dad's credit report should remain untouched. But, there is no guaranty that the creditor won't report a BK on his report. So, he'll need to keep an eye on his reports and dispute any incorrect entries.

[df04527]

No it will not affect him. i was in same situation and my credit was not affected at all and i was the primary on the loan. It was reaffirmed and paid off. My daughter bk'd.

[jodie3134]

Thank you. Df04527 - did you have to sign a reaffirmation for the car along with your daughter? Or was she the only one who had to sign?

[df04527]

I did not have to sign anything. Just her as I wasn't the one who was bankrupting ... Same applies to your dad.

[SMinGA2]

One note, since you said its a lease, is that you only reaffirm (or not) car loans. For a lease, you either reject or assume it. Assume means you keep going with the original terms. To reject means you give the car back and they can't come after you for any balances owed.

How long is left on the lease? The reason I ask: at some point you'll either need a loan to buy the car, or you'll need to replace it. If the lease is ending in the next few months you might want to see about taking care of that before filing.