In Jan 2001, at the age of 23, I purchased a car. At the time, I had an excellent job and very good credit. I did not need a cosigner for this loan. The dealer suggested adding my boyfriend to the loan to help build his credit. Well, a year later, for medical reasons, I quit my job. The car was repoed and I filed bk.
For the following reasons, I don't why the bank allowed this...
Bf did not have a job at the time and in 2000 only made $923.
He had absolutely no credit.
My question, can the collection agency come after him for the full amount of the loan due or only for what the bank did not recover during the auction.
Next year will be 7 years, will it come off of his credit report in January when we purchased the car or when it was repoed?
Has anyone ever been in this situation and the bank removed it from their credit report.
Due to my mistake he is unable to get any credit. We were unable to get the money to get the car back.
Yes I made a mistake but I have learned!
2007-03-22 05:03:21 · 6 answers · asked by Brandi 1 in Business & Finance ➔ Credit
Absolutely! He cosigned, so he is now responsible for the payment of this car loan. A cosigner is a backup to the bank if the original lon holder defaults on the payments. If he had bad credit then, he should have never been able to co sign for you. Unfortunately, he is going down with you. Sorry.
2007-03-22 05:13:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you filed BK and the co-signer did not, then the co-signer is legally obligated to the loan. He may not even sue you for the money if it was discharged in Bankruptcy court. The BK will be on your credit report for 10 years from the date it was discharged. The co-signer will have it removed in 7 years. Good thing is that if it has been more than six years already, the lender most likely id past the statute of limitation to sue the co-signer for the money. He just has to wait it out now for it to be removed frm his credit report.
2007-03-22 05:19:08 · answer #2 · answered by Millionaire in training 4 · 0⤊ 0⤋
nothing comes off your credit report in 7 years, it stays forever. a bank will always know everything from your history. its a misconception about the 7 years thing. if he cosigned with you he is just as responsible as you are, if you do not have money they will come after him. sounds like you are in a mess, credit is one thing that can totally make or break you and its a shame this happened. but you will just have to try to recover, its going to take some time. good luck.
2007-03-22 05:13:42 · answer #3 · answered by loveboatcaptain 5 · 0⤊ 0⤋
You remain responsible for the amount of the loan that was unpaid, minus whatever the bank recoups on the sale of the car, plus any fees you agreed to pay in your original loan contract. The entire point of having a cosigner is so the bank has as many opportunites to reclaim their money as possible.
2016-03-28 23:39:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Since you filed B.K. you are off the hook, your boyfriend however is not. As the co-signer on the loan , he is responsible for paying it if you do not. Therefore the lender will come after him for the remaining balance.
This will result in collection activity then court then judgment. After that they can garnish his wages, attach bank accounts and file liens on any property he may have.
Your boyfriend is screwed thanks to you.
The loan will come off 7-years after the discharge date of your B.K., but the collections will continue for another 7-years and if a judgment is issued, it can remain on his credit for up to 20-years.
2007-03-22 05:43:22 · answer #5 · answered by ? 7 · 0⤊ 0⤋
They will come after both of you for the money that was not recovered in the auction. You may be off the hook if it was included in your bankruptcy, but he is still responsible. It will come off his credit report 7 years after it was reported as a bad debt.
2007-03-22 05:12:28 · answer #6 · answered by rebel g 4 · 0⤊ 0⤋