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i cosigned on a truck for my son who has since declared bankruptcy. i am now financially responsible for the payment. if i just let the truck be repossessed how badly would this affect my credit? at this time i have excellent credit with a score above 800.
Hi Donnellycreative,
If you let the truck to be repossessed, your credit score will definitely take a hit. It is a negative mark on your credit report, since you have defaulted on your debt account. Repossession stays on your credit report for 7 years like any other negative item. However, I would suggest you to talk ad negotiate with the creditor regarding a repayment plan. See if you can settle the debt by talking to the creditor. Otherwise you will have to wait for 7 years for the debt to fall off. In the mean time you have to be regular with the payments on your other accounts so that your score does not fall any more.