Legal Question in Bankruptcy in New York

Re: Debt reaffirmation 11 USC 524 cosigner of auto loan

It is nice to see parents assisting their children in this way. Helping your children establish a good foundation is important. I am sorry this has not turned into a positive.

Regarding your credit, the CH7 will have no impact. The 're-affirmation' will, in the same way, have no impact. The only impact will occur if the payments on the car are not made and your interest is reported to a credit reporting agency.

The CH7 of your DAUGHTER has no impact on your obligation as co-signor. The re-affirmation means, again, she (and you if she does not pay) is liable to the bank for non-payment and to you if you make the payments for her.

Regarding other debts, the car is an asset in your daughter's name. It may be seized. If seized, the bank gets to be paid before the other creditor. That means the other creditor will get to keep little or no money in this way. It is more an act of 'malice' or revenge than a serious effort to collect a debt. They know this. But they have the legal right.

The CH7 changes all of this. Any debt listed in the CH7 becomes 'not-recoverable'. No discharged debt can be recovered by the action of the creditor. Your daughter may pay the debt, but the debtor may take no action.

The car is safe.