Legal Question in Bankruptcy in Connecticut

bankruptcy and how it effects future credit

I was a co-signor on an automobile loan and the vehicle is registered in my name and so is the Insurance. I have never missed a payment. The other person who co-signed the loan filed for bankruptcy in January.

Recently, I had an accident and the vehicle was totalled. The loan has been paid off in full. Now I am trying to purchase another vehicle with my mother as my co-signor and I am being told that because of my co-signors bankruptcy, I am now a credit risk and cannot get the loan. I have nothing to do with the other persons finances. I was merely a co-signor on a loan, which was always paid on time with no defaults. Why does this affect my credit? What can I do to clear up this matter and how long will this take?

Thanks


Asked on 4/21/03, 4:07 pm

1 Answer from Attorneys
Joel M. Grafstein Grafstein & Arcaro, LLC

Re: bankruptcy and how it effects future credit

The problem is not necessarily a bankruptcy issue, but a credit issue. You should obtain a copy of your credit report and determine what information is listed on your credit history. The Fair Credit Reporting Act obligates the creditor to correct any errors within 30 days. You also have the opportunity to place an explanation in your credit report. The best thing to do is sit with the finance person at the car dealership and tell them that you had a co-signer file bankruptcy, but the loan has been paid off. Your other problem may be the fact that you have the accident and that your car was totaled. I normally recommend that this matter be reviewed with a auto dealer financial representative and they may be of assistance. Good Luck.

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Answered on 4/28/03, 7:38 pm


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