I am filing a chapter 7 bankruptcy and i have a car that i am going to reaffirm. With that being said i also have a cosigner on my car loan. Can my cosigner object my reaffirmation agreement and force me to lose my car?
Response: No, your co-signer cannot object to your reaffirmation. However, since you are not being represented by Counsel, the Court would schedule a hearing in the case to make sure that you know the consequences of reaffirming a debt, that reaffirmation nullifies the benefit of your bankruptcy filing. This means that if the Court approves the reaffirmation agreement and if you later default and the lender repossesses and sells the car for less you owe on it, the lender would still come after you for the deficiency. Whereas if you did not reaffirm, the lender cannot come after you, but can still go after your co-signer who remains liable on the debt whether you reaffirmed or not since the co-signer is not filing for bankruptcy protection.
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