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What happens to the co signer if the borrower files bankruptcy?
Wiki User
∙ 13y ago
If you are talking about someone who cosigned for your loan filing bankruptcy, As long as you continue to make your payments on time, nothing will happen. If you are talking about someone you cosigned for taking bankruptcy, you may very well have to pay this loan. Contact the lender.
Wiki User
∙ 16y ago
Wiki User
∙ 13y agoYou may need to consult with your own attorney. The primary borrower's bankruptcy doesn't affect your obligations as co-signer. The lender may go after you for payment.
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What if happens if you cosigned for car loan and the borrower files for bankruptcy?
if the consigner files bankruptcy can the borrower take the car
What happens if a co signer files bankruptcy?
They both go bankruptcy
Is the borrower responsible if the co signer files bankruptcy?
Yes, co-signer means obligated as a guarantor of the note, but the federal bankruptcy can excuse the obligation as part of the settlement.
Can the primary borrower continue paying car loan if co-signer files chapter 7 bankruptcy?
Has to
What if primary signer files bankruptcy?
The co-signer would then be liable.
Auto Co-signer files bankruptcy does primary have to keep the loan?
The loan becomes at worst like a single-signer loan. You are free to refinance or pay it off. Which you were, anyway. The only entity affected by the bankruptcy of a cosigner on a loan is the lender.
What if the primary borrower files bankruptcy is the cosigner still responsible for making payments on the vehicle Can the co-signer take their name off the vehicle?
A Co-signer is always responsible for the item unless the primary borrower refinances and removes the co-signer. Unfortunately if the primary borrower filed bankrupcy it doesn't seem likely they will be able to refinance. Yes. Cosigner means that if for ANY reason the main borrower cannot pay, cosigner will be responsible to pay.
If the co-signer of a car files bankruptcy will this affect the credit of the primary even though my payment are always on time?
No. It only affects the lender ability to get paid if the primary borrower defaults.
If a cosigner files for bankruptcy does it put the primary signer under bankruptcy too?
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
When primary borrower files bankrupt how is cosigner affected?
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.
If a co-signer files bankruptcy what happens to the primary signers credit if they continue to pay the loan?
Nothing. The primary is all that is concerned. If signer and co-signer are, were, or will be married - that's different. If either the co-signer or the signer is or was dependent to the other, that's different too, but only if it is regarding your current income. Basically, if you pay the bills, you have good credit.
What is liability of co-signer if the owner files bankruptcy and moves out of state?
unfortunately you will be stuck paying the bill.
