April 26th, 2007 by Questions
Good day If someone is going brankrupt and they\’re a co-signer for someone else on a car loan will it affect the other person.
Thanks you rachael
April 27, 2007 at 5:10 pm, Barton Goth GCO Bankruptcy Trustees said:
This is really up to the lender. Technically speaking the presence of a bankruptcy gives the secured lender the ability to seize the vehicle, although if you are up on your payments the likelihood of this happening is very small.
Typically speaking the secured lenders will look at the account and as long as everything is up to date, they have contact with both you and the cosigner, then they will often permit payments to continue as normal and nothing will impact yours or the cosigners credit. However, if the vehicle is seized there would definitely be an effect on the credit of both parties.
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