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I’m in the process of filing chapter 7. I have placed my private loans in this bankruptcy which I have a co-signer on. I am making payments until my bankruptcy is final.
14 ANSWERS
Once you stop making payments, the creditor will pursue the co-signer for the balance due.
Answered on Dec 11th, 2013 at 5:00 AM
General Practice Attorney serving Coeur d'Alene, ID
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Michael B. McFarland, PA
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Unless you reaffirm the debt, and make arrangements to pay it, your obligation will be discharged; and your co-signer will be solely responsible for the payment and they almost certainly will go after the co-signer. If he or she can't afford to pay, it might be necessary for him or her to file bankruptcy.
Answered on Dec 06th, 2013 at 8:01 AM
Richard hirsh
Your co-signer will remain liable on the obligations.
Answered on Dec 06th, 2013 at 8:01 AM
Bankruptcy Chapter 7 Attorney serving Boulder, CO
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Law Office of Paul Stuber
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The co-signer who did not go through bankruptcy will still be responsible for the loan.
Answered on Dec 05th, 2013 at 4:53 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You co-signor is going to be personally liable for the debts.
Answered on Dec 04th, 2013 at 9:15 PM
Creditors have the right to pursue co-signers when you file bankruptcy. If you don't want them to do that, you have to reach out to the creditors and assure them you intend to honor the debts. They may ask you to sign a reaffirmation agreement which gets filed with the court and specifically exempts the debt from bankruptcy. Some creditors will not accept payments while you are in bankruptcy, or will require a reaffirmation agreement before they will accept a payment. It is very risky to sign any such legal document without getting legal advice. You need to fully understand your rights and obligations.
Answered on Dec 04th, 2013 at 7:53 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Your co-signor remains 100% liable for the debt unless of course they file bankruptcy and get a discharge. I am concerned about the payments prior to bankruptcy as these could be considered preferential treatment of a creditor unless this is for a secured debt, like car installment payments.
Answered on Dec 04th, 2013 at 7:52 PM
Your co-signer will see a notation on his credit report that loan is in bankruptcy. It should not affect his/her credit score as long as someone makes the payments on the student loan.
Answered on Dec 04th, 2013 at 7:51 PM
2 Awards
It should have no effect on your co-signor as long as you continue to make the payments.
Answered on Dec 04th, 2013 at 7:51 PM
Your Chapter 7 discharge will not relieve the co-signor of their liability on those loans.
Answered on Dec 04th, 2013 at 7:51 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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It depends on the language of the agreement and the attitude of the creditor. With some creditors, as long as you continue to make the payments, there could be little to no effect on the co-signer. Some creditors will make an immediate demand for payment from the co-signer.
Answered on Dec 04th, 2013 at 7:50 PM
Bankruptcy Attorney serving Middlebury, VT
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Law Office of Kathleen Walls
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Basically, if/when you receive your chapter 7 discharge, you will receive a discharge of this debt (assuming they are dischargeable), but your co-signer will not. Your co-signer will continue to be liable and is subject to collection from the creditor.
Answered on Dec 04th, 2013 at 7:49 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Then they will seek to collect from the co-signer.
Answered on Dec 04th, 2013 at 7:49 PM
Deborah F. Bowinski
Your bankruptcy filing does not protect the cosigner. The lenders will be free to seek payment in full from the cosigner.
Answered on Dec 04th, 2013 at 7:49 PM