Can the lean holder file suit against the co-signee? 17 Answers as of August 04, 2014

If the primary signee on a mortgage files chapter 13 and the lean holder does not confirm with the trustee.

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Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
I believe that 13 stops actions against co-signers.
Answer Applies to: Texas
Replied: 8/4/2014
Stephens Gourley & Bywater | David A. Stephens
That depends on the terms of the plan, but the mortgage company generally can after the chapter 13 is completed.
Answer Applies to: Nevada
Replied: 7/31/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If I understand your question correctly, the lender will not file against one of the borrowers on real property. They will wait until the automatic stay is over and file foreclosure.
Answer Applies to: New York
Replied: 7/30/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
Sure, if there has been a default in payments on a loan that has been co-signed, the lender is free to pursue the co-signer alone...which is why creditors often require a co-signer.
Answer Applies to: Nevada
Replied: 7/30/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
If you file a Ch 13 Bankruptcy you can pay for the asset through the plan. The lien remains until you complete all the payments under the plan and get a discharge of the debt then the lien holder must give you a release.
Answer Applies to: Minnesota
Replied: 7/29/2014
    Law Office of Peter M. Lively
    Law Office of Peter M. Lively | Peter M. Lively
    The co-debtor stay in Chapter 13 covers non-debtors regarding consumer debts that they owe with the Chapter 13 debtor, but creditors can get relief from the automatic stay to proceed against co-debtors when the Chapter 13 plan does not provide for 100% of the debt.
    Answer Applies to: California
    Replied: 7/29/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Any co signer is liable for the debt, however there is a co-debtor stay in ch13. The lender has file a motion for relief in ch13, which will not be granted as long as you are in compliance.
    Answer Applies to: California
    Replied: 7/29/2014
    Ronald K. Nims LLC | Ronald K. Nims
    Lien holder. As long as your Chapter 13 plan conforms to the bankruptcy law, then the lien holder is forced to comply with the terms of he plan. The lien holder can't bring suit against your cosigner because bankruptcy law prohibits suits against cosigners during the plan. When your plan is complete, the loan will be paid off or (it's is a long term loan like a mortgage), the bankruptcy court will issue a court order stating that the loan is current and the lien holder has no right to sue on a current loan. If the lien holder fails to file a proof of claim with the court, you, as the debtor, can file a proof of claim and the loan will be handled based on the information in your proof of claim?
    Answer Applies to: Ohio
    Replied: 7/29/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    If you listed the co-signer on schedule H, they are subject to the co-debtor stay and the lienholder may not sue them without permission from the bankruptcy court.
    Answer Applies to: Oregon
    Replied: 7/29/2014
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    The question is confusing as there is no such person as a primary signee. If you sign you are co-equal signers.
    Answer Applies to: Michigan
    Replied: 7/29/2014
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    This is unclear. Call an experienced bankruptcy lawyer to set up an appointment to bring in the documents to figure out what is going on.
    Answer Applies to: Illinois
    Replied: 7/29/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    In California, most mortgages are resolved by non-judicial foreclosure (sale of the property at auction). By taking that action, the lender does not have a deficiency claim against a co-signer. However, if there was a junior lien (2nd or 3rd) that was eliminated in a foreclosure, they could sue the co-signer. The co-signer should see an attorney so that the facts of this particular matter can be analyzed.
    Answer Applies to: California
    Replied: 7/29/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Yes. You are jointly liable.
    Answer Applies to: Nevada
    Replied: 7/29/2014
    Law Office of Melissa Botting | Melissa Botting
    As long as you are in bankruptcy there is a co-debtor stay. The lender cannot try to collect from your co-signer. If the court accepted the plan the mortgage company did not need to confirm. If the court approved plan is completed, the debt is paid.
    Answer Applies to: Texas
    Replied: 7/29/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    Chapter 13 has a co debtor stay while the debtor pays per the plan.
    Answer Applies to: South Carolina
    Replied: 7/29/2014
    Barnhart Law Office
    Barnhart Law Office | Bruce C Barnhart
    The co-debtor stay (11 USC ?1301) prevents a creditor from attempting to collect a debt from a co-signee. The stay is limited to consumer debts and can be lifted if the Plan does not provide for full payment of the debt.
    Answer Applies to: Nebraska
    Replied: 7/29/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Yes a creditor can sue a co signor for a deficiency. If you are paying it in a 13 then I don't think they would sue.
    Answer Applies to: Florida
    Replied: 7/29/2014
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