QUESTION
Is a co-signer still responsible if bankruptcy is filed?
Asked on Jul 21st, 2015 on Bankruptcy - Washington
More details to this question:
My niece co-signed on a loan for her 85 year old father. If he files bankruptcy is she still legally responsible for the debt?
11 ANSWERS
The reason creditors require a co-signer on a loan is if one files bankruptcy, the other signer is still responsible. Sorry.
Answered on Jul 23rd, 2015 at 10:32 PM
Family Law Attorney serving Hackensack, NJ
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The Law Offices of Stuart Jon Bierman
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Usually, the answer is: yes. The father who filed for bankruptcy would not have to make payments on the loan but the co-signor would still be liable on the loan.
Answered on Jul 23rd, 2015 at 10:30 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes that is why the co-signor was needed. It was because the borrower was a bankruptcy risk.
Answered on Jul 23rd, 2015 at 10:23 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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What is an 85 year old buying that he needs a loan? Seriously, yes, the co signer is still liable for the debt if the the primary files bankruptcy.
Answered on Jul 23rd, 2015 at 7:22 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Absolutely, that is why she was asked to sign.
Answered on Jul 23rd, 2015 at 12:15 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The answer is yes if a person files under Chapter 7. In chapter 13, on the other hand, a cosigner can be protected if the debtor's plan provides for 100% repayment to that creditor. Of course, the cosigner in some cases might want to consider a bankruptcy also.
Answered on Jul 22nd, 2015 at 8:08 PM
Yes, she would be solely responsible.
Answered on Jul 22nd, 2015 at 8:08 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes she is still liable.
Answered on Jul 22nd, 2015 at 6:04 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Yes. That is generally the reason that creditors request a co-signer. If the primary obligor does not pay, for whatever reason, they can pursue the co-signer.
Answered on Jul 22nd, 2015 at 5:18 PM