I have a car loan and my brother was the co-signer. If I filed for bankruptcy, will it affect my brother's credit reports? - Bankruptcy Law Questions and Answers- LawQA.com

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I have a car loan and my brother was the co-signer. If I filed for bankruptcy, will it affect my brother's credit reports?

I am planning to file for bankruptcy chapter 7. I loaned a car and my brother co-signed for me. If I filed, will it affect my brother’s credit standing. Will it show up on his credit report?


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If you file bankruptcy, your brother will be responsible for the car. If your brother doesn't pay for the car then it will effect his credit and it may have already if your are behind in payments.

Answer Applies to: California
Replied: 3/17/2013

Answer By Erven Nelson

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So long as someone keeps making the payments, his credit should not be hurt.

Answer Applies to: Nevada
Replied: 3/8/2013

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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Bankruptcy will not show on his credit but any late payments for the car will show on his credit.

Answer Applies to: New York
Replied: 3/8/2013

Ross Smith, Attorney at Law
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If you file for bankruptcy, it will not show on your brother/co-signor's credit report. But your brother's credit will be affected, if the payments are not continued on the car in a timely manner. You will be discharged from any obligation to pay on the car. But your brother will remain obligated to pay for it. Your best option may be to file, keep the car and continue the monthly payments on it. Do not "reaffirm" on the car. Just keep it insured and make the payments. Unless your lender is like FOMOCO or Santander, they will not in sist on a "reaffirmation." BTW, this is not territory for a novice to explore. You'll need an attorney to explain all the matters that you will bump into.

Answer Applies to: Ohio
Replied: 3/7/2013

Answer By Erik Severino

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Yes, your upcoming bankruptcy could affect your brother's credit. Assuming you wish to retain the vehicle, you will be required to "reaffirm" the car loan. By reaffirming the loan, the loan will still show up in good standing on both of your credit reports. But if you wish to surrender the vehicle, and thereby discharge your liability to the car loan, then this will severely hurt your brother's credit once the payments stop and the account is discharged in your bankruptcy.

Answer Applies to: Nevada
Replied: 3/7/2013

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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It will not show up on his credit report (if does that is an error and he can dispute it).

Answer Applies to: California
Replied: 3/7/2013

Answer By Susan G. Taylor
Law Office of Susan G. Taylor
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It won't affect his credit as long as the car is paid timely.

Answer Applies to: Texas
Replied: 3/7/2013

Answer By Joanna North
Law Office of Joanna North
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When one party who is joint on an auto loan files bankruptcy, the other party who is on the loan is still responsible for the debt. However, If the auto payments remain current, the credit report of the co-borrower will not be affected.

Answer Applies to: Oregon
Replied: 3/7/2013

Troutman & Napier
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If your brother pays the full amount on the loan then it will not affect his credit, but as a co-signer, he is 100% responsible for the debt. Only in a Chapter 13 can a co-signer get some protection. You, as the Chapter 13 debtor would be able to propose a plan that pays 100% of the debt in order to protect the co-signer over time.

Answer Applies to: Kentucky
Replied: 3/7/2013

Bordeaux Law, P.C.
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If you reaffirm the debt in your bankruptcy case (or just continue making all of the payments without reaffirming), your brother should not be affected.

Answer Applies to: California
Replied: 3/7/2013

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