Deal Pack Blog
How do I report an account where the Co-Buyer is bankrupt?
If a co-signer of an account files bankruptcy, do you report the account as bankrupt? The answer to this question, is no. If only the co-signer on an account files bankruptcy, the account is not to be reported to the bureau as bankrupt. Only when the primary signer on the account has filed bankruptcy is the account to be reported as such. This answer is the same regardless if the co-signer filed Chapter 7 or Chapter 13 bankruptcy. Adherence to this rule is imperative for any BHPH dealership reporting credit, as primary signers on accounts that have been inaccurately reported as bankrupt may have legal rights under the Fair Credit Reporting Act (FCRA). If in doubt, always consult with your credit reporting agency to ensure that you are reporting accurately and compliantly.