bankruptcy with cosigner
car payment..co signer is now in bankruptcy!?
2.5 yrs ago i bought a brand new car dad cosigned since i was 18 at the time, now he is in bankruptcy and since 09/2007 i have not recieved a bill and when I call my car loan place i am directed to a national bankruptcy hotline. I have tried to pay my 300 a month that I have not missed once in those 2.5 years but am not allowed to. i tried calling hsbc early this year and asked to have my cosigner removed but was told it was immpossible and i would have to refinance on my own, however I do not make enough money for that as I am a student. So today I checked my credit with equifax and under negative accounts there is my car loan with 12,000 past due and under account status it says “charge-off’. I was wondering if anyone had any advice for me as I am very upset his bankruptcy is effecting my credit, also what does charge off mean? any help is welcome and thank u!
Creditors are advised by bankruptcy court to charge off (forgive) unpaid debts of the bankrupt.
When a bankrupt person is contingent liable for a loan the bankrupt person lists that contingent debt in the group of debts owed… otherwise they may become liable for it immediately after becoming bankrupt should the primary creditor fail to pay.
Sorry to say, but you missed the opportunity to pay all of the debt before the bankruptcy, so your father had to clear it within the bankruptcy.
Fortunately, the debt has ceased to exist.
Just go on putting the payment in a money market fund in case you need to use it in place of credit.
