Am I responsible in my fathers bankruptcy? Why? 14 Answers as of May 19, 2015

Creditors are coming after me because of a loan that my name was on. But my father was also on the loan and he was involved in a bankruptcy. The creditors are still coming after me. Am I really liable? I thought that this was all taken care of.

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Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Your father's bankruptcy case does not relieve you of responsibility for a loan that was in joint name. It sounds as though you are also obligated on the account, and if that is the case then the collectors are well within their rights to pursue you for payment.
Answer Applies to: Colorado
Replied: 5/19/2015
Gleissner Law Firm, LLC | Luke Gleissner
Ordinarily, creditors require that each person on a loan sign the loan jointly and severally. This means that the creditor can go after either person on the loan or all of the persons on the loan. If you father filed a Chapter 7 bankruptcy, there would be no co-debtor stay and thus, the creditors would be free to come after you. If your father filed a Chapter 13 bankruptcy, the automatic stay would protect you. If your father filed a plan that pays less than 100% to the creditor, then the creditor could obtain relief from the automatic stay and again would be free to come after you. It is only when the bankruptcy results in the creditor being paid 100% does the bankruptcy resolve the debt for the other persons that sign on the loan.
Answer Applies to: South Carolina
Replied: 5/19/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Based on what you have stated here, the creditors can come after whom ever is liable on the debt (i.e., they can pick and choose). Sounds like your father filed BK, so he would be relieved of this obligation.
Answer Applies to: Colorado
Replied: 5/19/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
You would only be liable if you consigned or guaranteed payment. Consult a skilled BR lawyer.
Answer Applies to: Wisconsin
Replied: 5/18/2015
Davis Law SC | D. Nathan Davis
Usually, a debt has what is called joint and several liability. That means if one person who is liable for the debt is no longer liable, the creditor can go to the other person and demand full payment. You need to meet with an attorney to determine your rights in this matter. The debt may not be one that you are also liable for. You may be able to avoid having to pay this debt because of other rights you may have. Without meeting with an attorney, you may give up important rights.
Answer Applies to: South Carolina
Replied: 5/18/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You are really liable. That is why the creditor has two people sign on the loan, so it has a second one to go after. That is the purpose of a "co-signer".
    Answer Applies to: California
    Replied: 5/18/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    If your name was on the loan, you probably were a co-signer. The reason a creditor may require a co-signer is to have someone else to look to for payment in the event of a death or bankruptcy. As a co-signer, you are now 100% responsible for paying this debt or these debts.
    Answer Applies to: Nevada
    Replied: 5/18/2015
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    He is no longer liable but now you are liable for the entire amount. It is called "joint and severally liable"
    Answer Applies to: New York
    Replied: 5/18/2015
    Ronald K. Nims LLC | Ronald K. Nims
    If you signed on the loan, you're liable on it. Your father's obligation was discharged in his bankruptcy but your liability isn't affected by his bankruptcy
    Answer Applies to: Ohio
    Replied: 5/18/2015
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Yes you are really liable for the entire obligation as a co-debtor or guarantor.
    Answer Applies to: Michigan
    Replied: 5/18/2015
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    If you agreed to be legally responsible for the debt, such is the case when you co-sign a debt obligation, then you remain legally liable for the debt unless statute of limitation expires or YOU receive a discharge in bankruptcy. Your father's assets are protected because as to him I assume the debt has been discharged. If you haven't filed bankruptcy you remain liable so the creditors have turned to you for collections. receiving these emails click here.
    Answer Applies to: California
    Replied: 5/18/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    If you were a co-signor on the loan and did not file bankruptcy then the creditor can collect money from you.
    Answer Applies to: Virginia
    Replied: 5/18/2015
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    Any debt for which you signed as a responsible party, then you remain responsible. If you signed and your father signed, both of you would have been responsible for the repayment. If he has filed and had his liability discharged through bankruptcy, you or other responsible parties remain liable for the debt.
    Answer Applies to: Kentucky
    Replied: 5/18/2015
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Each person on the loan is individually liable for the debt. If one of these individuals receives a bankruptcy discharge, it is not the loan which is discharged. Only that person's liability is discharged. The other person would still be liable under the note for the payment of the entire remaining debt unless they file and also receive a discharge.
    Answer Applies to: California
    Replied: 5/18/2015
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