Co-Signors and Debt Discharge
Filing for bankruptcy protection is a safeguard that enables a debtor to discharge his debts after filing for bankruptcy. He is therefore relieved of the duty to repay any outstanding debts. Unfortunately, any remaining co-signor or co-signors would still be responsible for the debt because the discharge is specific to the one party who files for bankruptcy.
If you have loans or debt that have co-signors , please contact one of the experienced Massachusetts personal bankruptcy lawyers at the Law Office of Brian R. Lewis. 508-946-3323. Our bankruptcy attorneys will discuss the best options for your chapter 7 or chapter 13 personal bankruptcy.
Responsibilities of the Co-signor
A loan that is agreed to and signed by two or more people is the responsibility of all the endorsers. When one of the parties opts to file for bankruptcy and has individually discharged his debts, the onus of repaying the loan then falls on the remaining co-signor or co-signors. Therefore, in addition to meeting the payments, the remaining co-signors will have to be wary of all other co-signed debt that they may be party to. These debts include co-signed leases, mortgage loans, automobile loans and commercial loans. The sudden and unplanned responsibly to repay un-cleared debts sometimes becomes too burdensome for co-signors. Then they also may file for bankruptcy to relieve their debt burden.
If you overwhelmed with your debt or if the stress of your financial situation is too much, there are options. An experienced bankruptcy attorney can help, call the Law Office of Brian R Lewis at 508-946-3323.