Many times, when people try to get credit for a car, house, or something else, they can’t get credit on their own. So, they get a family member or friend to cosign on the loan. But, if they cosign a loan for you, they are equally responsible for the debt. And, because they are equally responsible for the debt, your payment history gets reported for the loan.

It is very important to remember this before getting someone to cosign for you. If you don’t make the payments on time, that can be reported on the cosigner’s report, and affect their credit report.

According to Experian, if you file bankruptcy, and someone cosigned your mortgage, but keep it current, the bankruptcy will only be reported on the filer’s credit report. So, your bankruptcy won’t affect the cosigner’s credit report. This explanation is directly from Experian’s blog: http://www.experian.com/blogs/ask-experian/2009/04/15/mortgage-cosigners-credit-report-not-affected-by-bankruptcy/

Sometimes, a creditor may report the bankruptcy, but, if that happens, the cosigner should be able to clarify, and possibly correct the report to show that they did not file the bankruptcy.

It is important to contact an experienced bankruptcy attorney to discuss all of your credit issues. Let us know if you have questions or concerns about your credit. We will help you figure out the best solutions.

Daniel J. Winter
BankruptcyLawChicago.com
312-789-999
djw@DWinterLaw.com
Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois