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Will filing Bankruptcy affect the primary borrower on a mortgage were I am a coborrower
Anonymous2 views4 answers
I want to file chapter 7, I am a coborrower on a house loan, I signed a quit claim deed and I am not on the deed, just on the hook to pay if primary borroer ever defaulted.
But I am not going to list the bank loan as a creditor and we have never missed a payment nor were we ever late, By my filing would it affect the other borrowers credit rating even knowing that I am not even going to list the house loan on my petition.
So quite frankly would my filing have any affect on the other persons credit rating.
Whoa! Back up the perjury truck & reconsider your approach to asking for a remedy under Federal law & deliberately not disclosing a debt!
If you file bankruptcy, you must disclose ALL debts. Some secured loans you can list to reaffirm (this might be an option to consider for a well-paying co-obligated loan)
You need to talk to a lawyer in person.
Mr. Bollinger is right. ALL debts and ALL assets must be listed in a bankruptcy filing. Folks go to jail for knowingly omitting creditors so as to keep them in the dark about their bankruptcy.
And in any event, your mortgage company probably will find out anyway. Most large companies belong to a service called BANKO -- which pulls numbers from bky filings across the country and sends out a blast email to their subscribers, with the last four digits of social security number and full name/address.
Pierre George BasmajiFinancial Markets and Services AttorneySan Francisco, CA ·
And I reiterate: declare ALL debts you are responsible for. It does not matter if the debts are being paid on time and in full, they must be declared. The court can DENY a discharge for ALL of your debts if you knowingly do not declare any debt; and there is simply no way you cannot know about being a cosigner on a mortgage. There is an assumption of fraud in the Bankruptcy Code when you do not declare a debt (and, to be blunt, what you are describing is fraud) as a failure to declare a debt in a Chapter 7 can potentially protect assets of a debtor that would otherwise be sold in a bankruptcy trustee liquidation.
If you want to continue being responsible for the debt after your bankruptcy discharge, simply negotiate a reaffirmation agreement with the lender and have it approved by the judge.
In response to your second question: your bankruptcy will not affect her credit rating. But if you two intend to enter into any other joint obligations in the future, your bankruptcy will make that difficult.
Yes. The other attorneys have explained, you need to list all debt including the mortgage. Have no fear. Credit reporting is by social security number. If the loan is not or has not been in default the mortgage company does not have the right to report negatively on the co-borrower. Seek a qualified bankruptcy attorney for help to avoid problems in your bankruptcy.
