My mother-in-law co-signed a car loan for my wife when she was in college (before we were married). Now my mother-in-law is filing bankruptcy. Will this affect my wife's credit? Can the lender legally "repo" the car since my wife is the primary borrower? What is the best course for us to take?
2007-09-12 13:05:58 · 7 answers · asked by Adam 1 in Business & Finance ➔ Credit
All accounts must be included in chapter 7 bankruptcy's at first. Then your MIL can request a reaffirmation agreement from the lender and simply sigh it.
This does not affect the term, payments or interest rate it simply says that the person filing bankruptcy want to keep this vehicle and continue making the payments as agreed.
It will show on your Wife's credit report as "Included in bankruptcy of another person".
Also, she needs to contact the lender and make sure that they continue to report the loan to the credit bureaus. Once bankruptcy is filed all creditors stop reporting, when she signs the reaffirmation agreement they will not report unless she calls them and request it.
2007-09-13 03:20:26 · answer #1 · answered by ? 7 · 0⤊ 0⤋
If your wife is making the regular payments, there is no reason the car would be filed under the bankuptcy since the loan is not defaulted. A co-signer is only responsible for the loan if the primary fails to make payments.
If your wife is not making the payments and your MIL has been responsible has defaulted, then yes, they can repo the car.
2007-09-12 13:15:39 · answer #2 · answered by Jill C 5 · 0⤊ 0⤋
If your mother-in-law is filing Chapter-7 bankruptcy you want her to contact the auto lender (assuming there is still a loan on the car) and request a re-commitment form.
Secured debt, such as a car or a house can be excluded from a Chapter-7. If there is no loan on the car then don't worry about it.
Either way the car cannot be repossessed. Relax.
2007-09-12 13:15:01 · answer #3 · answered by loancareer 3 · 1⤊ 0⤋
I believe that as long as the payments are being met ,
The vehicle should not be re-po'd .
And the mothers credit issue should not effect your wife's although this might be an excellent time to pay off the vehicle or get a loan for it all by herself .
There can't be that much left on the balance .
Pay as much $$$$ as you can , then borrow just enough to cover the balance .
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2007-09-12 13:17:00 · answer #4 · answered by kate 7 · 0⤊ 0⤋
as long as the mom doesn't include the car in the bankruptcy, and the payments are current, her being a co-signer will not affect your wife's credit. all the co-signer is on the paperwork for is to say that the borrower will pay and if not she will. I wouldn't worry.
2007-09-12 13:17:15 · answer #5 · answered by kaycee 3 · 0⤊ 0⤋
it was once the address yet now it particularly is the call on the credit application this is checked in concept it is going to possibly no longer even though it does in actuality nonetheless take place. i will placed it like this in the journey that your brother or sister lived with you on an identical address and he/sh had destructive credit reposts it would not in concept consequence your abiltity to get credit. yet guy and spouse is a diverse ball interest
2016-12-13 07:34:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The best course for you to take would be to refinance the car in both of your names and take MIL off of the paperwork completely.
2007-09-12 13:10:05 · answer #7 · answered by soaplakegirl 6 · 2⤊ 0⤋