Can a cosigner be liable if we filed a discharged a chapter 7 bankruptcy? 20 Answers as of June 11, 2013

I filed for a ch7 bankruptcy. My father co-signed on my mortgage and it was included in the bk. Is he still liable for the loan?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Your cosigner is still liable for the debt. Your filing bankruptcy discharged your personal obligation to pay the debt, not your cosigner's obligation to pay the debt.
Answer Applies to: California
Replied: 5/17/2011
Benson Law Firm
Benson Law Firm | David Benson
Yes. Unless the co-signor files for bankruptcy protection as well, he or she will remain liable on the loan.
Answer Applies to: Ohio
Replied: 5/5/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
During a bankruptcy there is a co-debtor stay preventing collection. After the bankruptcy is over the lender can collect from the co-debtor.
Answer Applies to: California
Replied: 5/4/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, your father is liable and you are not. I do not know which state you are in, maybe the loan is a "non-recourse" loan, meaning the lender can only look to the property for repayment. You will have to check that out with a lawyer licensed in your state.
Answer Applies to: California
Replied: 5/4/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Yes, of course. He's liable for any deficiency on the mortgage after sale of the property (depending on your state's laws for collecting deficiencies on mortgages).
Answer Applies to: California
Replied: 5/4/2011
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    The cosigner is liable.
    Answer Applies to: California
    Replied: 5/4/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    Yes, father is still a debtor on the mortgage loan and will need to make payments or file his own bankruptcy case to eliminate his legal liability on that debt.
    Answer Applies to: California
    Replied: 5/4/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Yes. That's why they call it co-signing, unfortunately.
    Answer Applies to: California
    Replied: 5/4/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    A cosigner who does not file for bankruptcy is liable for debts he contracted to pay. The real question is whether the mortgage will attempt to collect against him. Certain states apply anti-deficiency statutes which could potentially avoid any collection against cosigner.
    Answer Applies to: California
    Replied: 5/4/2011
    The Law Offices of Alan M. Laskin
    The Law Offices of Alan M. Laskin | Jared B. Gaynor
    Yes - BK discharge is only applicable to the person who filed the petition. Any co-signers who are not otherwise discharged are still liable on those debts.
    Answer Applies to: California
    Replied: 5/4/2011
    Rhonda R. Werner Schultz, PL
    Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
    Yes. Since he did not file bankruptcy to discharge the debt also, he will be liable.
    Answer Applies to: Wisconsin
    Replied: 5/4/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Yes. A cosigner is still liable on the loan unless they file a Bankruptcy as well. The purpose of having a cosigner is to have someone to pay the bill in the event the first person/people default.
    Answer Applies to: New Hampshire
    Replied: 5/4/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Yep. That's what it means to be a co-signer.
    Answer Applies to: Virginia
    Replied: 5/3/2011
    Southern California Law Advocates
    Southern California Law Advocates | Norma Duenas
    A cosigner still remains liable for a debt that was discharged in your bankruptcy. Although your liability is removed from the discharged debt, it does not remove the liability of the person who cosigned for you. Your father could still be held liable for repaying the mortgage deficiency. You should check whether the lender is entitled to collect on any deficiency balance from a home that was surrendered. Many states have anti-deficiency laws and other laws that may limit their ability to collect on any deficiency owed on a surrendered home.
    Answer Applies to: California
    Replied: 5/3/2011
    Saedi Law Group
    Saedi Law Group | Lorena Saedi
    Yes. The Chapter 7 discharge only discharged your liability. Since your father was a co-signer he is jointly liable for the debt. Since you are now off the hook due to our discharge the creditor will now focus their effort on your father.
    Answer Applies to: Georgia
    Replied: 5/3/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Your father did not file a bankruptcy Chapter 7 case so he is not protected by the bankruptcy case you filed. Therefore, he remains liable for the debt.
    Answer Applies to: California
    Replied: 5/3/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Yes, your bankruptcy discharge does not affect your father's individual obligation on the mortgage note.
    Answer Applies to: Indiana
    Replied: 5/3/2011
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