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Sometimes. If you reaffirm (i.e. keep) the debt in a Chapter 7, the co-signer is generally unaffected by your bankruptcy filing. In a Chapter 13, if you continue to pay a debt outside the Plan, or pay it in full through the Plan, then again the co-signer is generally unaffected. However, if you file Chapter 7 or Chapter 13 and do not pay the debt (i.e. if you discharge the debt in your bankruptcy case), then the lender will pursue to co-debtor for repayment. In other words, your bankruptcy does not also protect the co-signer; if you don't pay the debt, the lender WILL go after your co-signer. In this case, the co-signer would need to pay the debt or file bankruptcy also. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
What else can I help you with?
What happens when a loan is cosigned and the borrowers file bankruptcy but the cosigner is deceased?
The loan would be part of the bankruptcy filing. I can't see how the death of the cosigner is significant. (In financial terms, that is.)
Does having a car in repo effect filing for bankruptcy?
No - having had a car that was re-possessed will not affect the filing of a Bankruptcy.
If one files bankruptcy and has a co-signer will if affect their credit rating?
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.
Will your credit rating be affected by your partner filing bankruptcy?
If your partner files for bankruptcy and you don't then the bankruptcy will not appear on your credit report. But you will be partly responsible for before bankruptcy filing. Generally filing bankruptcy will affect the credit rating of the individual who filed it.
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.
What are the rights of a cosigner when the primary filed bankruptcy then didnt pay the bankruptcy so the bankruptcy was dismissed?
As a cosigner, you are not at all protected if the primary signer files for bankruptcy. In many cases, filing for bankruptcy relieves the primary signer on the loan from his obligations towards the loan, at which point the lender will turn to the cosigner for payment. You'll either have to pay the loan or file for your own bankruptcy (if necessary).Unfortunately, you're stuck with the loan regardless of whether or not the primary signer successfully completes his bankruptcy filling. You may want to contact a bankruptcy lawyer for some additional advice or assistance.
How does bankruptcy affect filing taxes if you are in bankruptcy?
Doesn't change any of your legal obligations (other than the debts at the court), like filing taxes, or what is due.
Can a person work legally if he file bankruptcy?
Yes. Filing bankruptcy does not affect your work status generally speaking.
If you are about to get married and you are filing Chapter 7 bankruptcy will this bankruptcy affect your spouse in any way after the marriage?
It will only affect the non-filing spouse if the couple apply for some type of joint credit, such as a home mortgage. It will not affect the new spouse's credit report/score.
Does getting divorced change filing bankruptcy?
No, your relationship status does not affect your bankruptcy proceedings but if you filed as a couple (as opposed to one individual to the marriage filing) things can get complicated when it comes to debts, etc.
When filing an answer to a civil complaint can I deny and say I'm filing for bankruptcy?
When filing an answer to a civil complaint, you can deny the allegations made against you, but simply stating that you are filing for bankruptcy does not automatically affect the response to the complaint. Bankruptcy can provide an automatic stay on certain legal actions, but it is essential to properly file the bankruptcy petition and notify the court. It's advisable to seek legal counsel to ensure that you respond appropriately to the complaint while also handling your bankruptcy filing correctly.
Will it affect your car loan if you go bankruptcy?
Yes, filing for bankruptcy can affect your car loan. If you include the car loan in your bankruptcy filing, you may have to surrender the vehicle or negotiate a reaffirmation agreement to keep it. Additionally, bankruptcy can negatively impact your credit score, making it harder to obtain future loans. However, not including the car loan in bankruptcy may allow you to retain the vehicle, provided you continue making payments.
