Q: I’m filling chapter 7 bankruptcy and I want to reaffirm the debt for my car. Is it possible for my cosinger to take it?
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A:
When you file for Chapter 7 bankruptcy and choose to reaffirm the debt for your car, you're agreeing to continue making payments on that loan as if you hadn't filed for bankruptcy. This can help you keep the vehicle if you're able to stay current on the payments.
However, it's important to understand that your cosigner is still responsible for the debt. If you fall behind on payments or default, the lender can pursue your cosigner for the remaining balance. This means your cosigner's credit and finances could be affected if you are unable to keep up with the reaffirmed loan.
If you want to avoid impacting your cosigner, make sure you are confident in your ability to maintain the payments after reaffirming the debt. Open communication with your cosigner is crucial during this process to ensure they are aware of the situation and potential risks involved.
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