QUESTION
What can I do as a co signer if the debtor has filed for bankruptcy?
Asked on Jul 01st, 2011 on Bankruptcy - Georgia
More details to this question:
When I was 17 years old my father bought me a car and had me co-sign on the loan. He had great credit at the time and thought that having me as a co-signor would give me a head start and help me build my credit. I had no idea at the time what being a co-signor really meant, all I knew was that I had a nice new car and it was half mine. Now, three years later, he has filed for bankruptcy (chapter 7 I believe) the car was repossessed (about a year ago). I was looking into personal loans with the hopes of purchasing a car and decided to look at my credit report for the first time ever and to my surprise I learned that I am now responsible for an $11,262 debt because I co-signed. Please tell me there is hope! I was never, at any point, contact by him or his lawyer about the situation. I am in desperate need of advice, I have nowhere to turn and no money. Please help!
9 ANSWERS
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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You may be able to discharge your debt on the car in a chapter 7 bankruptcy.
Answered on Jul 04th, 2013 at 1:50 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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As a co-signer you are liable fully for the debt if the primary signer files bankruptcy.
Answered on Jul 04th, 2013 at 1:50 AM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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Unfortunately, you are liable for the debt. Your options are to pay it in full, ignore it and see what happens, settle it, or file BK. Your dads BK petition should have been listed you as a cosigner, but it doesnt make a difference.
Answered on Jul 14th, 2011 at 12:46 PM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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You weren't of legal age when you signed, so you should be able to get out of the contract. Contact the creditor with a copy of your drivers license or birth certificate, circle your date of birth and date of contract and ask them to remove it from your credit report because of age. If they won't, then contact a consumer lawyer.
Answered on Jul 11th, 2011 at 10:01 AM
Sorry. As a cosigner, you are still responsible for the debt. Your father's bankruptcy wiped out his personal responsibility for the loan but it did not change the fact that you are still responsible for the debt. Your choices are pay the debt, negotiate a settlement, or, if your total situation justifies it, file bankruptcy and discharge the debt.
Answered on Jul 08th, 2011 at 1:42 PM
Samuel Lee Tucker
Unfortunately you are stuck with the debt. You are probably a good candidate fo a Chapter 7 yourself.
Answered on Jul 08th, 2011 at 1:01 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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A 17-year old cannot enter into a contract. Therefore, if you are sued then your defense is legal incapacity to contract. Getting that out of your credit report is very difficult if not impossible but you can have a note put in the credit report saying that you were a minor when you signed the contract and not legally liable for the debt.
Answered on Jul 08th, 2011 at 7:18 AM
Bankruptcy & Debt Attorney serving San Diego, CA
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Jackie Robert Geller Attorney at Law
Unfortunately, you are responsible on the loan because you co-signed and became a joint debtor. Your father should do the right thing and help you pay for the car.
Answered on Jul 07th, 2011 at 4:30 PM
Glen Edward Ashman
The answer depends on details. Go see a lawyer immediately. If you signed at age 17 you may have a defense that needs to be asserted. This is something vital to your future to get right. And I suspect from your post it may have a happy ending.
Answered on Jul 07th, 2011 at 4:30 PM