co-signed for a loan and now it is in default

December 29th, 2009 by Questions

My husband co-signed for a loan for a trailer that is now 2 months in default. I know that this is currently affecting his credit rating. My questions are; 1) Do we have a legal right to try and sell this thing before it destroys his credit? and 2) If not, and it gets repossessed or goes to collections how long and how badly will it affect his credit rating? He has always maintained great credit (785) and is seriously worried about this situation.

Posted from: Alberta

Questions

One Response to “co-signed for a loan and now it is in default”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

You are correct that a seizure will have a dramatic impact on your husbands credit. The inevitable result will be that an R-8 will be listed on his credit report, how this will impact his credit score is impossible to say other than it will drop significantly.

In terms of your rights, you do have the right to sell it, but you will have to get the bank to remove any registrations against the trailer (which they may or may not be willing to do).

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)