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If a person you co-sign a loan for declares bankruptcy can you sue that person after you have paid off their loan?
Jvandersanden
With or without the BK (which may add some aspects making it more difficult for you to collect anything on something that is part of the BK), their obligation to you would depend on your (hopefully written) agreement addressing what that obligation would be in the case you had to pay on the loan.
Without something establishing he has a debt to you, it may be tough to prove there is one...just the fact you paid certainly isn't enough, he may have preferred to have it entirely resolved in the BK...in which case you did it for YOUR benefit. He doesn't pay for things you did for your benefit. And after more thought, you may want to check the loan docs to see if there is a term something like"...if the cosigner has to act and pay the lender after demand, the cosigner will take the secured position of the lender..." so you could still have a calim to the car...and actually be part of the BK creditors.
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∙ 15y ago
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Will a cosigner's credit be affected if they cosign for someone who has a bad credit score because of a Chapter 7 bankruptcy?
The cosigner's credit will only be affected if the person that they cosign for defaults on the loan. The bankruptcy will not affect the cosigners credit.
Does a student loan need to be repaid after a school declares bankruptcy?
Yes.
Can you cosign for a car if you are filing for bankruptcy in the future?
If you are filing for bankruptcy, and you try to cosign -- two things can happen. 1. the lender will turn you down. 2. If the court finds out you have applied for credit the bankruptcy can be stopped. If you mean that the car and loan will be for you during or after the bankruptcy, this still has to be disclosed and again the bankruptcy can be stopped.
What is meant by student loan bankruptcy?
Student loan bankruptcy happens when a student has not been a student for the last 7 years and declares bankruptcy. For more information please contact a student loan office.
Is a primary borrower's mortgage or credit affected when the co signer on a loan declares bankruptcy?
no
What happens when a cosigner declares bankruptcy-not the primary owner?
Nothing unless they filed on your loan.
What happens if you cosign a loan and the other person dies?
yes
If a bank declares bankruptcy how is a loan protected?
Someone will buy the loan from the bank. Unfortunately, they don't just go away.
Can you have a person with new credit cosign your loan?
It's up to the lender.
Can someone on social security benefit's cosign for a loan?
Yes, someone on the social security can be able to cosign for a loan. The person cosigning the loan however has to have good credit regardless of his availability on the social security benefit.
Can you cosign on a loan if you declared bankruptcy but have a good income and a good future outlook for earnings?
Whethr or not you would be eligible would be the decision of the lender. Many lenders consider a person who has discharged a total liquidation bankruptcy and is gainfully employed as a good credit risk, as it is assumed the person has no outstanding debts.
If i cosign a car for someone will my name come off in a year?
No. It doesn't come off until the loan is paid and if the person who is getting the loan doesn't pay you will owe for the loan. When you cosign it also goes on your credit report.
