Please help before I make a mistake in filing chapter 11

[Doug]

I was the cosigner on a vehicle for my sister in law. I got the whole "You're the only one who can help me," "If I don't have a car, I can't get to work, then I can't pay my bills..." and so on. Being soft-hearted, I gave in and cosigned for her. She had a trade-in that carried over negative equity.

To make a long story short, she defaulted on the payments, had the vehicle voluntarily repossessed, and is currently filing bankruptcy on the balance which is about $18,000. I by no means have the resources to pay for the defaulted portion so I am in the process of starting the bankruptcy (chapter 11 on only the vehicle) process. I already have 2 vehicles, a rent payment, insurance, a wife who is not working and a 4 year old daughter.

 

My credit rating before this incident was flawless and I scored around 850. Now from my most recent report, about 1 year ago, it's at 650. I am so bummed out.

 

What can I do, besides grin and take it, to show creditors that I am not a risk that this is the only blemish on my report. I am looking to trade in my car soon to get a new one before the bankruptcy is finalized because I'm sure after it goes through, I won't be able to get a nickel on loan let alone a car.

 

By the way, I'm 27 years old if that makes a difference in your response.

[pt0872]

Copy and paste this in the Credit forum...youll get a better response

[Doug]

Thank you.