Are you considering bankruptcy, but are worried about what will happen to a co-signer?  Well, there’s good news and there’s bad news.  If a debtor files for Chapter 7 bankruptcy, the debt can be discharged, freeing the debtor from any further repayment obligation; but the co-signer on that debt may still be responsible for repaying it.  For example, if a debtor purchased a $15,000 vehicle with a co-signer, filed bankruptcy, returned the car; and the creditor was …

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Do you have a secured loan with a co-signer? When you file Chapter 13 bankruptcy there are a few ways that you can minimize or even eliminate future creditor actions against your non-filing co-signer. Here are your options:

You can return the property to the lender. For example, if you and a co-signer have a loan on a vehicle, you can surrender the vehicle to the creditor during bankruptcy. But beware; if …

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Many debtors filing for Chapter 7 or Chapter 13 bankruptcy hold debt that has a co-signer. Although this type of debt can and should be included in a bankruptcy filing, it will not protect the co-signer from being pursued by creditors. When someone co-signs on a debt, they are basically saying that they will repay the debt if the main person on the loan defaults or somehow does not fulfill their terms of the debt. For example: If you took out a car loan and had your mother …

Comment by Ann: … with my mom as a co-signer, the balance is $1500 and I …

… will prohibit credit card companies from lending to anyone under 21 years old unless he/she has a co-signer or proof of their ability to make payments on the loan.

The article said:

“…unsolicited card offers will be prohibited to everyone under 21, and credit card companies can’t entice students into signing up for a credit card with any tangible item anywhere on or near a college campus or at a college-sponsored event.”

Also, Texas law now requires that the state’s colleges …

… government.  It is also important to remember that Chapter 7 bankruptcy does not relieve a co-signer from his or her responsibilities under the loan.  The creditor has the right to enforce the co-signer’s obligation.  Chapter 13 bankruptcy, on the other hand, will protect a co-signer so long as the debtor complies with his or her bankruptcy plan.

Those seriously considering filing for bankruptcy protection should consult with a reputable, experienced bankruptcy lawyer.  He or …

… income by $175.

The debtor told the bankruptcy court that her non-filing spouse (who is not co-signer on the car loan) would pay the debt. But the bankruptcy court denied the reaffirmation because the debtor failed to prove that she or her husband had sufficient income to repay the debt. But the bankruptcy court added that the denial of the reaffirmation should not be interpreted by the car loan creditor as a go ahead to repossess the vehicle as long as there was no payment default. …