Will me filing bankruptcy effect co-signers credit

Letter to “Ask Leon”

I thinking of filing chapter 13, but my co-signer don’t want me to include the car. They say it will negatively affect their credit and their credit score. I was told as long as I pay off the entire loan, it won’t affect them. Is this true?

Leon Says…

You don’t have a choice. If you file bankruptcy, the car loan will be listed. Your consignor will not be directly affected so long as you remain current on the vehicle and comply with the original contract. However, a notation about the account being included in the bankruptcy case might appear on the consignor’s credit report.