I believe there is a statute of limitations that says the creditor can continue to attempt collection for seven to ten years depending on what state you are in. * The SOL for debts is established by state law, therefore it will differ according to the state and to the type of debt. Secured debts are not discharged in any bankruptcy. A chapter 13 is not a liquidation BK therefore the vehicle would have to be reaffirmed with the lender or the lender could begin procedure for repossession or recovery of the debt owed. In this case the cosigner/co-debtor becomes responsible for the debt and rest assured he or she will be contacted by the lender either concerning repossession of the vehicle and if necessary a lawsuit to recover monies owed.
The primary borrower is responsible for making the payments and adhering to the terms of the lending contract. The cosigner is legally obligated only if the primary borrower defaults on the lending agreement or files bankruptcy (chapter 7).
In most states, YES
Codebtors must be listed in the bankruptcy, and put in the list of creditors if you want the codebtor to receive notices. No one is "invited" to the creditors' meeting, but notices are mailed to all the creditors, which/who may attend if they wish.
The lender, and the borrower is responsible for any remaining discrepancy amount and the applicable fees.
It MUST be included.
You either pay or dont pay or file B/K also. If a co-borrower has debt discharged through bankruptcy, the other signatory is 100% liable for the balance of the loan.
Yes. It is usually the only other option for a borrower. If not the creditor might seek legal recourse in the form of a lawsuit. Even though the idea of a lawsuit is "scary" it can be a better choice than BK, depending on circumstances of the borrower.
Your mortgage should have been included in your chapter 7 discharge. If it was- then you are no longer liable for the mortgage, but the lender can still foreclose on the property. If the mortgage was not included- then why wasnt it included.
Chapter 13 is a payment plan form of bankruptcy. You make payments to creditors based on your income over a set number of years. It is the more responsible choice over other forms of bankruptcies. You take a chance anytime you cosign. It should be based on the borrowers character.
Maybe. A chapter 13 is a repayment plan and in some instances will not affect the terms of the lender and borrower contract.
You guaranteed to pay the loan if the primary borrower does not. That is what a cosigner does. The lender is going to be looking at you for their money.
Yes. That is the purpose for requiring a co-signor on a loan. If the original borrower can not pay or goes bankrupt the finance company then collects from the co-signor.
yes it is
If the lender is willing to reaffirm the loan with the borrower then the vehicle can be returned. A vehicle is a secured debt and is not subject to chapter 7 bankruptcy laws.
no see links below
Payday loans can be put in chapter 7.
Secured debts are not dischargeable in bankruptcy. As a co-borrower or co-signer you are equally responsible for the debt even though you do not reside in a CP state.
ALL assets and ALL liabilities are included. Each are given different priority. Taxes are a liability. They are included and given their priority.
that he is more kind/responsible
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That happened to me and I included it in my chapter 7 but it made it difficult to open a new account. Open your new account now before you are reported to chexsystems.