By Trey Latham - October 14, 2013
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.
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.
Request a Demo