Question
How does bankruptcy affect cosigner's credit?
My grandparents helped me get a car by being the primary loan applicant while I cosigned. The car is mine, I make the payments, insurance, gas, etc. Now my grandparents are filing Chapter 13 bankruptcy. Also, my mother was in a real rut after a divorce, mental illness, and a lot of bad financial decisions. Absolutely no one would finance a car for her, so I made a stupid decision and cosigned for her. Well, now she is also filing Chapter 13 bankruptcy. Question: How will both of these bankruptcies affect my credit? My mom's lawyer told her my credit is safe, but my grandparents' lawyer told them that he can't be positive yet if my credit is safe. I'm kind of worried. I'm going to graduate college in less than two years. Will their bankruptcies affect my ability to find an apartment, or even qualify for a home loan?
3 weeks ago - 3 answers
Best Answer
Chosen by Asker
Tough place to be in, I hope they are current with those loans you co-signed, otherwise IF they fell/fall behind on the payments, that is the only way it'll affect you, Any late's will show on your reports, Their bankruptcies wont affect your credit per'se, But you did post you are making the payments on your car so that wont be a problem, Your mom OToH, the trustee will make payments to her creditors so as long as she makes the payments, it wont hurt you, However you are on the hook for making up the difference in her payments no matter what the court decides for her, Good luck,
by drive_55_not
3 weeks ago
Asker's Rating: 
Other Answers
The first one shouldn't effect you as long as you reaffirm this debt and continue to make payments like you are suppose to. The second one where your mother is the one paying on it will effect you if you can't reaffirm this one also. Also, in either case since you are the co-signer the companies that own these loans can come after you for full payment of these loans.
by andy- 3 weeks ago
Your credit rating will not be effected in either situation provided you continue to be current on both obligations. Despite what happens to your mom and grandparents, as co-signer, you are responsible. It doesn't matter what position you hold...primary/secondary, or what ownership position you have. Both debts are ultimately yours. RJ
by R J- 3 weeks ago