I am strongly considering filing for BK 13 b/c I got behind on my car payments and desperately need to save my car. On top of that, creditors are (of course) harrassing me daily about my credit card debt! I need help! My question is this.... If I file BK in an attempt to pay off my debts and also save my car, will that have any bearing on a person who co signed for me? Also, is it best to get a lawyer or just try to file on your own? Will lawyers generally include that cost in the filing or is it generally expected up front? Any advice would be appreciated!
Yes. The creditor can go after the co-signer for the entire balance due. If you are going to file BK, use a lawyer. They will know the quirks and the procedures of the BK court in your area. Their costs are expected up front and are separate from filing fees, which are paid to the court. HTH, John
Is there any way for me to avoidt hem going after the co signer? B/c from the way Im understanding it is, once the car is in litigation for bankruptcy, then thats it. (at least thats what a legal begal told me)...
They will go after the co-signer period and it will show up on the co-signer's credit report. Can you borrow the funds to pay it off and then file the bk. Definitely file with a bk attorney and consult with a couple of them, you will have legal back up should a problem arise and you will have less stress on yourself. You may also be able to reaffirm the car, which means you continue to make the payments ON TIME and the financer will stop sending you statements as it is then against the law (once bk is filed) for them to send those to you unless you call them and ask for a statement. I know this for a fact, been there done that, did that, however, depending on the circumstance of your total bk case, it will still show as iibk on both reports. Make your payment on time after your BK o ryou will never get credit, I always say it is the kiss of death if you do not pay before or by the due date. You have filed BK for a fresh start with your creditors so you can now show them financial responsibility.
Oh ok... Well I guess opinions on that topic will vary. From my understanding (and I just found this out after I posted this, so bear with me if I get some things wrong or mixed up).... If I file for Ch13 and I have a co signer on my car loan, that will still put an 'automatic stay' on my account..meaning that as long as I pay my end of the BK, then they wont be bothered by it either. BUT...once its listed in litigation, no matter who's on the agreement, its a freeze on payment. But if I slip, then that person will be responsible for the portion of the debt I neglected to pay.
Im going to speak with a lawyer tomorrow and post his/her response here! Thank yall for responding! Very sweet of you!
