QUESTION
If it legal for the bank to make my co-signer cover our loan after I filed bankruptcy and why?
Asked on Aug 11th, 2015 on Bankruptcy - New York
More details to this question:
I filed bankruptcy in 2009 and put an auto loan on it. Now in 2010 the bank sent my cosigner for the loan papers to pay the loan. Is this legal?
9 ANSWERS
Yes if the co signer did not file bankruptcy they can.
Answered on Sep 03rd, 2015 at 3:17 PM
The co-signer guaranteed that s/he would pay the loan if you did not pay. So what do you think was the purpose of requiring a co-signer other than to make sure this debt would be paid if you did not pay?
Answered on Sep 03rd, 2015 at 3:17 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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This question, based on events in 2010, reaches me in August 2015. I assume this problem has long since been resolved. If I am missing something, please re-post your question with more information.
Answered on Sep 03rd, 2015 at 3:17 PM
Yes, they cannot collect from you so they must look to the co-signer.
Answered on Sep 03rd, 2015 at 3:17 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Yes it is legal. When a person agrees to co-sign on a debt, they agree to be responsible for re-payment of that debt. If the loan is not paid by one party, the creditor can seek payment from the other. If you received a discharge in BK but the co-signor hasn't joined you as a spouse in your BK or filed their own BK and received a discharge, the co-signor's obligation remains post your BK. In other words, your BK protection doesn't extent do other people who agreed by contract to be responsible for repayment.
Answered on Sep 03rd, 2015 at 3:17 PM
Unfortunately, yes. You filed BK, not the consignor. This is exactly why lenders want consignors!
Answered on Sep 03rd, 2015 at 3:17 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Yes. That is the reason that creditors get co-signers. So that when the principal defaults, there is someone else to pursue.
Answered on Sep 03rd, 2015 at 3:17 PM
Yes, the purpose of a co-signer is to provide another guarantor for the loan. They remain liable unless they also file bankruptcy.
Answered on Sep 03rd, 2015 at 3:17 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Yes. That is the purpose of a co-signer. If one party cannot, the co-signer becomes responsible for the debt.
Answered on Sep 03rd, 2015 at 3:17 PM