Legal Question in Bankruptcy in Pennsylvania

Re: Co-Signers and Non Discharged Debt

The cosigner's credit will only be effected if you do not make the payments. Your decision to reaffirm the debt, or not do so, will not effect them.

Secured creditors have been trying to intimidate debtors into reaffirming by not sending statements pending a bankruptcy and by claiming that their credit regarding the loan is effected. I strongly advise each of my clients not to reaffirm as there is no benefit to you whatsoever, only to the secured creditor. . If you do not reaffirm, you can still keep the car by simply making the payments. A future delinquency will result in the lender only being able to repossess the car. If you reaffirm and become delinquent in the future, they can pursue you for the entire debt.

I trust this has been helpful, but do not hesitate to call or E-mail on a free initial basis.