Can I collect from the cosigner of someone who filed bankruptcy? 19 Answers as of February 14, 2011

I run a small school and made a loan to a student. All of my loans require a co-signor. My student filed bankruptcy and this account was listed in the bankruptcy. Can I continue to collect from the cosigner?

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William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
Yes, you can. You should hire a lawyer.
Answer Applies to: Tennessee
Replied: 2/13/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, you can collect from the cosigner once the bankruptcy of the student is complete.
Answer Applies to: California
Replied: 2/9/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Yes, you can.
Answer Applies to: South Dakota
Replied: 2/9/2011
Cohen & Kendziorra, P.A.
Cohen & Kendziorra, P.A. | Robert S. Cohen
Yes you can.
Answer Applies to: Florida
Replied: 2/9/2011
Rhonda R. Werner Schultz, PL
Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
You can typically collect from the co-signor unless the debtor filed a Chapter 13 bankruptcy or the co-signor filed a bankruptcy also. A Chapter 13 Bankruptcy protects the co-signor also.
Answer Applies to: Wisconsin
Replied: 2/9/2011
    Law Offices of J. L. Haddock, PLLC
    Law Offices of J. L. Haddock, PLLC | Jared L. Haddock
    Generally, yes. Usually, the purpose of requiring a co-signor in the first place is that it allows collection from another in satisfaction of an otherwise uncollectable debt owed. In some jurisdictions the relationship of the co-signor to the debtor may sometimes pose a problem, but not usually that I am aware of.
    Answer Applies to: Michigan
    Replied: 2/9/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    As long as the co-signor has not filed bankruptcy, you can after the bankruptcy.
    Answer Applies to: New Hampshire
    Replied: 2/9/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes, you can go after the co-signer now unless the student filed under Chapter 13 which provides protection for the co-signer (co-debtor) while the bankruptcy case is pending. If it is a Chapter 13 that the student filed and the debt is not paid by the student in the Chapter 13 Plan, then you can collect it from the co-signer in the future when the Chapter 13 Plan is concluded and the case is closed. A good question would be whether the student loan is dischargeable in the student's bankruptcy. If it is not, and the student filed a Chapter 7, then you might be able to collect the loan from the student after the student's bankruptcy case closes since the loan will remain alive. Whether the loan you made to the student is dischargeable requires that you consult with a bankruptcy attorney to review the loan documents. All debt has to be listed in the bankruptcy petition. Therefore, just listing a student loan in a bankruptcy petition does not mean it will be discharged.
    Answer Applies to: California
    Replied: 2/8/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    Yes, unless the co-signer too files bankruptcy.
    Answer Applies to: California
    Replied: 2/8/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Yes.
    Answer Applies to: California
    Replied: 2/8/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    Yes, but be careful! As long as your agreement obligated the cosigner on the debt, the cosigner remains liable despite the bankruptcy. However, the automatic bankruptcy stay may prevent you from taking action against the cosigner while the case is pending without court approval depending on the type of case that was filed and the characterization of the debt. If you violate the automatic stay, you could be liable for damages. You should consult with an experienced attorney before attempting to collect from the cosigner.
    Answer Applies to: California
    Replied: 2/8/2011
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