I am co-signer on a auto loan with my mother. She filed chapter 7. The auto loan account was transfered to the bankruptcy retain department. The auto loan has been in good standing and current since opened and still is. I have two options here, 1. keep paying as I have been and they will continue to report current status'. 2. because the car has some damage, offer a settlement for title which is significantly less than the payoff and they will report to the credit bureous a "settled for less than full balance" but showing a zero balance. My question is, what effect if any, does would that have on my credit for settling for less than full?? I am in the process of rebuilding my credit currently have a 580 beacon with a goal of 650 so I can buy a house soon. What am I up against settling vs. continueing to pay off as I have been? Thanks!
