Co-Signer
I co-signed on a loan made by my husband. We have since separated and he declared bankruptcy. This particular creditor is harrassing me with phone calls. I am living in a rent geared to income seniors apt. I told this creditor that and they are asking me to fax them copies of my income. I have no money left over after rent, phone, necessities of life are paid. There is no point in me declaring bankruptcy as I don’t have any bills (except this one they are harassing me over). Any suggestions as to how I can get them to stop harassing me. I would assume that some payment is being made to them through my huband’s trustee.
With a cosigner, and the type of history you have identified, I would assume that obtaining financing would be possible, but I recommend asking this same question of a mortgage broker, as they would be much more familiar with the specific requirements each lender will have.
Most lenders don’t automatically say no when considering financing. However, the big difficulty is that each separate lending institution has it’s one internal processes and controls. I wouldn’t expect that with a consignor you would have too many difficulties, however, I do recommend reviewing the following page on credit repair and listening to the following radio broadcast on the credit bureau. These resources will help you to better understand what is necessary for you to move forward to a point where you will no longer have these types of concerns.
Realistically, these creditors have the right to collect until you have paid the debts in full. You see, what normally happens when one files for bankruptcy is the creditors are forced to write of the debt (as it is unusual for the creditors to receive any funds in a bankruptcy and if they do it is usually pennies on the dollar). By co-signing the loan you have ensured that the loan will be paid in full regardless of what happens to your husband. As you husband will now be legally cleared from the debt it rests on your shoulders to no make arrangements with the lender. As a result you are in a position where you have to either negotiate with the creditor to find a mutually acceptable amount, live with the harassment or explore alternatives to restructure the debt (i.e file a bankruptcy or a consumer proposal).
We find that some people are in a position where they are “creditor proof,†meaning that due to either the source of their income or the level of their income there is nothing the creditors can do to force payments and from the sounds of it you may be in this position. If you are you may be able to do nothing and eventually the calls should stop. To confirm if you are in fact creditor proof you are best to contact a licensed trustee and have him review you income and the assets you own and verify what the creditors can or cannot do to force collection.