I bought a 2005 Mustang last year. During college, I messed my credit up a little, so I had my fiancee co-sign on the car for me. It helped me get the car. However, she's had some problems and will now be surrendering her car and going bankrupt before we marry, so that we can work on her credit and get it back into shape. My question is, will this affect my car loan?
2007-05-04 05:52:32 · 5 answers · asked by jude7265 4 in Business & Finance ➔ Credit
The only thing that will happen is your account will show up as "included in bankruptcy of another". It will not effect your score, term or payments.
Her bankruptcy will not effect your score if you get married. Your credit is your credit and hers is hers. The only way it will effect you in the future is if you apply for joint credit to purchase a home or another vehicle. Then you will be paying a higher rate on interest due to her bankruptcy.
2007-05-04 06:18:09 · answer #1 · answered by ? 7 · 0⤊ 0⤋
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RE Co-signer bankruptcy question?
I bought a 2005 Mustang last year. During college, I messed my credit up a little, so I had my fiancee co-sign on the car for me. It helped me get the car. However, she's had some problems and will now be surrendering her car and going bankrupt before we marry, so that we can work on her credit and get it back into shape. My question is, will this affect my car loan?
2014-10-05 22:31:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It depends on the contract. Since she is a Co-Signer you are both equally resonsible for the loan. The bank probably won't want the car back as long as it is continued to be paid on, but she might need to claim it in the bankruptcy since it is technically debt of hers.
If you have been paying on it for a year and have been on-time there is a good chance you can get it re-financed in your name only now. This might be something you want to look at.
2007-05-04 06:19:46 · answer #3 · answered by OC1999 7 · 0⤊ 0⤋
It won't affect your loan, except that you are left still owing the balance and that in the event of missed payments, they won't bother coming after her, they'll hit you first. Her bankruptcy doesn't affect your obligation. If you get married however, it will affect your credit rating and make it more difficult , if not impossible to get a car loan or a mortgage.
2007-05-04 05:59:09 · answer #4 · answered by squeezie_1999 7 · 0⤊ 0⤋
It truly relies upon on his credit now. A financial disaster 4 years in the past is plenty worse than a financial disaster 6 years in the past. If he has been engaged on his credit and his debt to benefit ratio is distinctly good then he might want to beable that can help you you. He needs to undersdand with the help of cosigning the non-public loan he's responsible for the debt. in case you default or record financial disaster then he will develop into responsible for paying lower back the non-public loan. because he has filed bankrpucy 4-6 years in the past he does no longer have that as an decision to get out of paying your debt for a minimum of yet another 4-6 years. So he should be very careful cosigning for you.
2016-11-25 02:02:25 · answer #5 · answered by ? 4 · 0⤊ 0⤋