Legal Question in Bankruptcy in California

I want to protect my auto loan co-signer during chapter 7

I recently bought a new car. I am the primary and a relative co-signed on the loan. I am getting ready to file a chapter 7 and would like to keep this car and continue to make payments. I want to make sure that my co-signer's credit is not damaged by my chapter 7 filing. How should I proceed? Someone told me to reaffirm the loan - should I do this? What if the lender refuses to reaffirm? Will a discharge appear on my relative's credit report?


Asked on 11/22/03, 9:46 pm

2 Answers from Attorneys
Gary Fraley California Bankruptcy Attorneys

Re: I want to protect my auto loan co-signer during chapter 7

Your co-signor is safe. As long as you make the payments when due their credit will not be affected by your bankruptcy. The creditor does NOT have a choice in whether or not you keep the car. The do not have to agree to it. Only you have that choice. What you can do is "retain" the car and just make all your payments timely. You do NOT have to "reaffirm" the debt to keep the car. You should not do so as there is no reason to reinstate your personal liability to be potentially sued by them. There is simply no benefit to reaffirming.

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Answered on 11/28/03, 1:17 am
Alvin Tenner Law Office of Alvin G. Tenner

Re: I want to protect my auto loan co-signer during chapter 7

You can re-afirm.The releative will only be hutr if you do not pay.

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Answered on 11/24/03, 8:02 pm


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