My father cosigned on my auto loan and is now filing bankruptcy. He has never made a payment on the loan. I’ve been making all the payments and it is my car. Will anything happen to me or the loan?
12 Comments Already
August 29th, 2010 @12:07 am
No but you willl still be responsble for the car note
August 29th, 2010 @12:16 am
if you default on the loan, it will damage your credit history. if you don’t default, then you should be fine. of course, you’ll have to stay faithful paying all payments without your father’s help to avoid damage to your credit history. pay in full and on time always to stay safe.
August 29th, 2010 @12:19 am
Your loan will be unaffected, and as long as you continue to make payments, your credit score should be fine too. In fact, your father’s credit score will be aided by your payments on your loan because he is a cosigner. Even though he will have a bankruptcy in his credit report for several years to come, your loan will also show up in his report, and if you are making payments, then it will be positive.
August 29th, 2010 @12:54 am
As long as you keep up with your payments, no problem with you.
August 29th, 2010 @1:52 am
I would imagine that you would have a legal obligation to mention the bankruptcy of your father to the person who holds your loan. You should call them and find out if you can continue your loan (likely they would be more than happy to continue the loan if you have not been a real pain to them.
Right now, many people are defaulting on loans and it would be a welcome relief to have a responsible party pay their debts.
August 29th, 2010 @2:26 am
As long as you keep making the payments on time, nothing.
Even if your father includes this loan in his bankruptcy, you would still be held responsible for paying off the loan.
August 29th, 2010 @2:51 am
No, you won’t be affected
August 29th, 2010 @3:39 am
Actually, if the cosigner files bankruptcy, they can call the loan and demand immediate repayment in full. Will they? No idea. However, if you have made every payment on time and continue to do so, they might not look up the bankruptcy records and note it. Do not do anything which would call attention to your loan, like a late payment! Also make sure you beef up your reserves and savings. Do not take on any sort of new debt, new credit card, etc. The anonymity of automatic payments, like clockwork, won’t trigger any flags on the computer, so maybe no one will look into your loan, or if they do look, your record of consistent on-time payments will stand you in good stead.
August 29th, 2010 @4:33 am
no as long as you keep up on your payments you will be fine just make sure they know that u dont want your car on the bankruptcy
August 29th, 2010 @5:02 am
Nothing happens to you or your car note. As long as you continue meeting the terms of your loan, the lender must honor the original terms, also. At this point, it is still YOUR loan until you default. His BK releases him from liability for your debt should you default. He must declare his relationship as a co-signer on your note. The lender can ask for more collateral, but you don’t have to provide it. Your loan paperwork is sufficient.
August 29th, 2010 @5:30 am
As long as you keep making the payments on the loan in accordance with the contract, you and your car get to stay together. Fall behind and your car will be repossessed.
No. Will make no difference.