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Company Loan Type APR Est. Pmt.

Bankruptcy

Posted on: 28th Jul, 2007 05:27 am
Please advise, whether bankruptcy filed by the co-borrower on the loan, will affect the borrowers credit report.
Hi Hanth,

If your co-borrower has filed bankruptcy without notifying you, it will pull your credit score. And it will show up on your credit report that the other person has filed for bankruptcy. You cannot avoid it.
Posted on: 29th Jul, 2007 10:12 pm
Definitely. If your co-borrower filed for bankruptcy then it will affect your credit report too.
Posted on: 29th Jul, 2007 10:49 pm
I'm at a loss as to how the credit repositories would even know about B's (bad borrower) bankruptcy on G's (good borrower) reports since credit history information is sent separately for each borrower. Wouldn't make sense that B's sole and separate public record "issues" should be tied or reported except at they affect the loan's "joint and several".

If the loan continues to be paid "as agreed", I cannot see how G's FICO would be changed by B's bankruptcy.

Larry and Adonis seem certain to the contrary. Enlighten me.
Posted on: 30th Jul, 2007 11:49 am
Welcome Guest,

Yes, I agree with your logic. If a co-borrower on a property has filed bankruptcy, it should not affect the credit report of the other borrower in any way. Even after bankruptcy, if the borrower continue to make payments for the loan, then it will not affect his credit score negatively.
Posted on: 01st Aug, 2007 02:22 am
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