I've got a situation I don't know how to handle yet. I'm trying to get everything ready before the free consult with a lawyer, but I might file pro se. Here's the situation:
A few years ago, my mom needed to get a loan to get dentures. My parents needed a cosigner for the loan, and I was the only person they could get on the phone. I agreed to be cosigner.
Over a year later, I found out that I wasn't the cosigner--I was the main person on the loan! This only came to my attention because my parents had missed a payment and the loan company called me. What's worse, it turns out it wasn't some accident on the paperwork--my parents knew about it (as my father said, "That's the only way it would get approved.") and neglected to tell me. Over time, they have missed other payments. They are the ones who make all the payments with their own money.
Now, I am facing a chapter 7 bkr filing and must decide what is the best way to handle this loan. My choices, as near as I can tell:
1. Put the loan on the list of loans I am requesting to have discharged. This would permanently take my name off the loan if it goes through. However, it could be problematic--the fact that my parents have continued to make payments could be seen and "preferrential payment", and a trustee may mistakenly think that I have been giving money to my father for the payments, and demand he give money to the court. It could probably be straightened out in time, but it would be a headache and might put my bkr in trouble.
2. Reaffirm the loan, making it clear to the trustee that the payments made on the loan were not made by me, and will continue to be made by my parents. Payments still could be seen as preferrential, but since I am not attempting to discharge that debt, it would not be as big a stumbling block.
Anyone have any advice, ideas or experience with this sort of thing?
A few years ago, my mom needed to get a loan to get dentures. My parents needed a cosigner for the loan, and I was the only person they could get on the phone. I agreed to be cosigner.
Over a year later, I found out that I wasn't the cosigner--I was the main person on the loan! This only came to my attention because my parents had missed a payment and the loan company called me. What's worse, it turns out it wasn't some accident on the paperwork--my parents knew about it (as my father said, "That's the only way it would get approved.") and neglected to tell me. Over time, they have missed other payments. They are the ones who make all the payments with their own money.
Now, I am facing a chapter 7 bkr filing and must decide what is the best way to handle this loan. My choices, as near as I can tell:
1. Put the loan on the list of loans I am requesting to have discharged. This would permanently take my name off the loan if it goes through. However, it could be problematic--the fact that my parents have continued to make payments could be seen and "preferrential payment", and a trustee may mistakenly think that I have been giving money to my father for the payments, and demand he give money to the court. It could probably be straightened out in time, but it would be a headache and might put my bkr in trouble.
2. Reaffirm the loan, making it clear to the trustee that the payments made on the loan were not made by me, and will continue to be made by my parents. Payments still could be seen as preferrential, but since I am not attempting to discharge that debt, it would not be as big a stumbling block.
Anyone have any advice, ideas or experience with this sort of thing?
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