I have 2 loans with different banks. One a car loan that still has about 3 years left on it. The other a small loan that should be paid off in a year. My father cosigned both of these loans for me. He is now filing for bankruptcy. His credit report shows both of my loans on his report, and he is worried that his filing for BK might affect my credit. He has spoken to a lawyer, and after a brief consult, the lawyer said he had to look into it further, but he advised that I trade the car in because his filing might affect me in the future. Has anyone heard of this?
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Yeah, that's a interesting situation. Usually the questions in this forum regard the reverse situation, i.e. the main obligor on the loan wants to declare BK and they want to know if that will effect the co-signer.
As long as all your payments are current, I don't think it will effect. However, I would recommend finding the original loan documents and go over the fine print.
Incidently, when were these loans taken out? -
Typically, a co-signee will be affected if the co-singer files BK, and vice versa.
-ToddThe information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.Comment
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The car loan is about 3 years old with about 2 years left. The other loan is 2 years old with one year left.
So if my father is the cosigner, and files for BK, then I can be affected? Oh boy...better get moving on a few things. Thanks for your help.
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