QUESTION
What will happen to my co-debtor of my account after I file for bankruptcy?
Asked on Jan 31st, 2011 on Bankruptcy - California
More details to this question:
I have filed bankruptcy and named an account that I share with my mother. She has the main account and I am a co-debtor. They say that she is the one liable for the charges. Will she still owe the debt after the bankruptcy?
11 ANSWERS
Yes, she will still owe the debt.
Answered on Feb 05th, 2011 at 1:13 PM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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Yes. Your mother will still owe the debt. A chapter 7 bankruptcy only protects the debtor, not the co-debtor. The result may be different if you elected to protect the co-signor in a chapter 13.
Answered on Feb 01st, 2011 at 3:43 PM
William C. Gosnell
They will go after the co-debtor to collect the money.
Answered on Feb 01st, 2011 at 12:43 PM
Family Law Attorney serving Hackensack, NJ
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The Law Offices of Stuart Jon Bierman
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Yes, usually a co-debtor who does not file for bankruptcy will remain liable for payment of the account after you file for bankruptcy. The creditor usually can no longer collect from you but they can collect from a co-signor, surety, etc.
Answered on Feb 01st, 2011 at 12:13 PM
Family Law Attorney serving Kingston, NH
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DiManna Law Office, LLC
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Yes, she has not filed Bankruptcy so only your obligation is discharged.
Answered on Feb 01st, 2011 at 7:43 AM
Your Mother (the co-signer) is still liable for the debt, but the creditor cannot collect the sum due from you if the debt was discharged. They can however, sue your Mother for the full balance.
Answered on Jan 31st, 2011 at 5:13 PM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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Your co-debtor will still owe the entire debt.
Answered on Jan 31st, 2011 at 4:28 PM
judith runyon
Yes.
Answered on Jan 31st, 2011 at 3:43 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Your mother will be left holding the bag for the debt and the creditors can continue to collect from her and sue her if she does not pay. Your bankruptcy filing does not protect your mother nor discharges her obligation to pay the debt. This assumes that you filed a Chapter 7. Chapter 13 is different in that the automatic stay applies the co-debtor although that does not mean the debt would be erased unless you pay it in the Chapter 13 Plan.
Answered on Jan 31st, 2011 at 3:13 PM
Worker's Compensation Attorney serving Corona, CA
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Workers' Compensation Lawyer, Inc.
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If your mother had personal liability on the account, your bankruptcy will have no effect on that liability.
Answered on Jan 31st, 2011 at 2:58 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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The short answer is that she will remain liable, unless you file a Chapter 13 case, which has a co-debtor stay feature. Creditors may be able to get around it, but they seldom want to spend the money on a lawyer to do that. e, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Answered on Jan 31st, 2011 at 2:58 PM