answersLogoWhite
Personal Finance
Loans
Co-signing
Money Management

What happens to a co-signer if the signer of the loan files bankrupt?


Top Answer
User Avatar
Wiki User
2004-04-18 10:23:18
2004-04-18 10:23:18

The co-signor becomes responsible for the balance due on the loan.

Related Questions

User Avatar

The lender can go after the co-signer. If you are the co-signer you should consult with an attorney who can review the situation and explain your position.

User Avatar

If the account the cosigner is on is included in the bankruptcy it will appear on their credit report. In most cases the cosigner will not be relieved of the debt when the primary holder files for bankruptcy. The creditor(s) can then pursue the cosigner for the collection of money owed.

User Avatar

I'm not an attorney, but I seriously doubt it. What sense would that make?

User Avatar

No, the primary signer is still liable. But if a loan is not dischargeable, such as a student loan (actually is is extremely hard to discharge), both the primary and co-signer will STILL be liable after the bankruptcy


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.