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If neither the borrower nor the cosigner have the money to pay back the loan, than bankruptcy is always an option for the cosigner. If you don't have the money, you don't have the money. However, be prepared to lose a good deal of your possessions and absolutely destroy your credit!

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18y ago

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Will private student loan companies go after a cosigner if you file for bankruptcy?

Gov't backed student loans are exempt from BKruptcy....they will come after you thru tax refunds or garnishment.


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.)


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


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.


What is a creditworthy cosigner for a private student loan?

a secured loan


What happens to a cosigner of a car loan when the primary loan holder files bankruptcy and the loan is discharged and they do a voluntary repossession?

They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.


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.


Is the APR of a student loan determined by the credit of the borrower or that of the cosigner?

The cosigner I believe but check with the loan issuers it's in the details.


Can the borrower of a private student loan change the cosigner during the term of a loan or must she refinance to do that?

AnswerThe short answer is no, you can never change cosigner on a private student loan. If they die, however, it is transferred to you.


If the cosigner on a car loan files bankruptcy what will happen to the other persons credit?

The creditor will seek repayment of the car loan from the cosigner. As long as the cosigner pays, their credit will not be affected. However, if they are unable or unwilling to pay, the debt will be pursued like any other bad debt, and it will affect their credit rating.


How can you get a student loan with no cosigner and only 1 year of employment?

It is very possible to get a student loan with no cosigner and only 1 year of employment. The best solution would be to apply for a federal stafford loan.


What happens to the cosigner if you are in chp 7 bankruptcy and you default on your car loan?

If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.