QUESTION
If it legal for the bank to make my cosigner cover our loan after I filed bankruptcy?
Asked on Feb 19th, 2011 on Bankruptcy - California
More details to this question:
I filed bankruptcy in 2004 and put an auto loan on it. Now in 2011 the bank sent my cosigner for the loan papers to pay the loan. Is this legal?
9 ANSWERS
Yes, it is legal for the bank to sue your cosigner and demand payment from him, regardless of whether or not you have filed bankruptcy.
Answered on Feb 27th, 2011 at 2:36 PM
Bankruptcy Attorney serving Orange, CA
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Goodman & Dicus LLP
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If someone else cosigned a loan or otherwise took on a joint obligation with you, that person can be held wholly responsible for the debt if you don't pay it. If you received a Chapter 7 discharge, you may no longer be liable for the debt, but your cosigner will still be liable.
Answered on Feb 27th, 2011 at 2:35 PM
William C. Gosnell
Yes, it is legal.
Answered on Feb 22nd, 2011 at 3:10 PM
judith runyon
Yes.
Answered on Feb 22nd, 2011 at 3:10 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Yes - that is what a co-signer is for.... The bank would normally be able to collect from either one of you the full amount owed. However, the bank cannot collect from you because of your bankruptcy so it will go after the co-signer. If you still have the car then the bank can repossess the vehicle and collect the deficiency (what is owed after the vehicle is sold at auction) from the co-signer who has not filed for bankruptcy. If you returned the car or it was taken by the bank the bank can now go after the co-signer for the deficiency.
Answered on Feb 22nd, 2011 at 1:42 PM
Yes, you are each "jointly and severally" liable for debts you co sign. This means you are each liable for the entire debt. Your bankruptcy means that you are not responsible for the debt, but your co signer is responsible for the entire obligation.
Answered on Feb 22nd, 2011 at 1:41 PM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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Yes, that why the bank wants a co-signer.
Answered on Feb 22nd, 2011 at 1:41 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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The debt itself was not extinguished in 2004, only your obligation to pay on it. Since there is a co-signer, the bank may pursue all debtors for payment.
Answered on Feb 22nd, 2011 at 1:40 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Without reviewing the payments or knowing the identity of your cosigner, I have to answer generally: It is normally legal for a creditor to try to collect from a co-signer. Indeed, that is the whole purpose of requiring a cosigner.
Answered on Feb 22nd, 2011 at 1:40 PM