QUESTION
Can a cosigner be liable if we filed a discharged a chapter 7 bankruptcy?
Asked on May 02nd, 2011 on Bankruptcy - California
More details to this question:
I filed for a ch7 bankruptcy. My father co-signed on my mortgage and it was included in the bk. Is he still liable for the loan?
11 ANSWERS
Bankruptcy & Debt Attorney serving San Diego, CA
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Jackie Robert Geller Attorney at Law
Yes.
Answered on Jun 11th, 2013 at 12:03 AM
Your cosigner is still liable for the debt. Your filing bankruptcy discharged your personal obligation to pay the debt, not your cosigner's obligation to pay the debt.
Answered on May 17th, 2011 at 9:22 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Yes. Unless the co-signor files for bankruptcy protection as well, he or she will remain liable on the loan.
Answered on May 05th, 2011 at 10:11 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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During a bankruptcy there is a co-debtor stay preventing collection. After the bankruptcy is over the lender can collect from the co-debtor.
Answered on May 04th, 2011 at 10:29 AM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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The cosigner is liable.
Answered on May 04th, 2011 at 10:12 AM
Yes - BK discharge is only applicable to the person who filed the petition. Any co-signers who are not otherwise discharged are still liable on those debts.
Answered on May 04th, 2011 at 8:59 AM
Norma Duenas
A cosigner still remains liable for a debt that was discharged in your bankruptcy. Although your liability is removed from the discharged debt, it does not remove the liability of the person who cosigned for you. Your father could still be held liable for repaying the mortgage deficiency. You should check whether the lender is entitled to collect on any deficiency balance from a home that was surrendered. Many states have anti-deficiency laws and other laws that may limit their ability to collect on any deficiency owed on a surrendered home.
Answered on May 03rd, 2011 at 12:18 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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Yes. The Chapter 7 discharge only discharged your liability. Since your father was a co-signer he is jointly liable for the debt. Since you are now off the hook due to our discharge the creditor will now focus their effort on your father.
Answered on May 03rd, 2011 at 12:16 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Your father did not file a bankruptcy Chapter 7 case so he is not protected by the bankruptcy case you filed. Therefore, he remains liable for the debt.
Answered on May 03rd, 2011 at 11:59 AM
Yes, your bankruptcy discharge does not affect your father's individual obligation on the mortgage note.
Answered on May 03rd, 2011 at 11:55 AM
Yes, your father is still liable to the mortgage lender. Your bankruptcy did not discharge his obligation as a co-signor.
Answered on May 03rd, 2011 at 10:52 AM