Posted on: 03rd Sep, 2009 04:04 pm
my mom cosigned for a consumer loan and now we find we have to file for chapter 13...what will happen to her credit. I don't want her hurt
cjpolley
Welcoem to the forum
Are you sayign she co-singed a loan with you and you are filing for chapter 13.
This should only affect your credit, not yoru mothers.
Good luck and feel free to ask
Welcoem to the forum
Are you sayign she co-singed a loan with you and you are filing for chapter 13.
This should only affect your credit, not yoru mothers.
Good luck and feel free to ask
Hi cjpolley,
If your mom is the co-signer for the loan, she is fully responsible for the debt. However, if she does not file for chapter 13, it will not affect her credit. The bankruptcy court filing shows on the credit report of the person who filed bankruptcy. The account status on the credit report of that person will read as "account included in bankruptcy". But the credit report of a co-signer who did not file bankruptcy will not show any of these. Thus, your mom's credit will not be adversely affected by the chapter 13.
If your mom is the co-signer for the loan, she is fully responsible for the debt. However, if she does not file for chapter 13, it will not affect her credit. The bankruptcy court filing shows on the credit report of the person who filed bankruptcy. The account status on the credit report of that person will read as "account included in bankruptcy". But the credit report of a co-signer who did not file bankruptcy will not show any of these. Thus, your mom's credit will not be adversely affected by the chapter 13.
bankruptcy and co-signers
before filing for bankruptcy you need to make sure which type is appropriate for your situation. at this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. the answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
essentially, only a chapter 13 bankruptcy will protect your co-signer. with a chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. that is to say, with chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. on the other hand, chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. all the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. the following aspects should stay constant while your file for bankruptcy and in the later processes also. if any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. the factors are:
you file for chapter 13 bankruptcy. chapter 7 will not protect your co-signers
the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
the co-signer is not the recipient of any benefits from the debt proceeds.
the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
when filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. it would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
before filing for bankruptcy you need to make sure which type is appropriate for your situation. at this time it is important to ask if your co-signer would be asked to pay your debt if your file for bankruptcy. the answer to this question would depend on the type of bankruptcy that you file for and the particulars of your bankruptcy plan.
essentially, only a chapter 13 bankruptcy will protect your co-signer. with a chapter 7 bankruptcy, only the debtor is protected and the co-signer will still be liable for the debt. that is to say, with chapter 7 bankruptcy, the creditors will still have the right to demand that your co-signer pay off the outstanding payments. on the other hand, chapter 13 bankruptcy is able to give the co-signer increased protection under the right conditions. under chapter 13 bankruptcy, as long as the bankruptcy plan is active the co-signers will receive a stay. all the same, when the plan closes, the co-signer is once again liable to pay any outstanding payments. the following aspects should stay constant while your file for bankruptcy and in the later processes also. if any one of the following factors is not satisfied at the point of bankruptcy filing or later, then your co-signer will be responsible to pay off your debts. the factors are:
you file for chapter 13 bankruptcy. chapter 7 will not protect your co-signers
the debt of the co-signer has to be a consumer debt, which is to say, a personal debt and not a business one.
the co-signer is not the recipient of any benefits from the debt proceeds.
the accurate bankruptcy plan payments are made in accordance with your bankruptcy.
when filing for bankruptcy, one needs to keep in mind that the conditions mentioned above are legal ones and have to be dealt with in the appropriate manner. it would be advisable to contact a bankruptcy attorney to ensure the protection of your co-signer.
the adverse effect of the borrower's bankruptcy on your Mom would be that she's likely to have to make the payments on that loan. but of course, that is the deal with cosigning a loan - a cosigner is always liable for payments, whether or not a primary borrower is making them.
if my common law co-signed on a car loan for me will his credit be okay, i have been using his last name for all my credit, and employment.
Hi Guest,
If your co-signer did not file bankruptcy jointly with you, then the bankruptcy filing won't affect that person.
If your co-signer did not file bankruptcy jointly with you, then the bankruptcy filing won't affect that person.
Guest, I didn't see any mention of a bankruptcy in your post, but I don't quite comprehend what it is you're asking.
If you have a car loan, and he cosigned, and you pay the payments in an as-agreed fashion, then his credit standing will be fine. If, on the other hand, you fail to make timely payments, his credit standing will worsen.
Did that provide you with any benefit?
If you have a car loan, and he cosigned, and you pay the payments in an as-agreed fashion, then his credit standing will be fine. If, on the other hand, you fail to make timely payments, his credit standing will worsen.
Did that provide you with any benefit?