Does a co signer remain resposible for any debt erased by filing chapter seven bankruptcy? 3 Answers as of February 27, 2012

Your co-debtor will continue to be responsible for his/her share of the debt, which is, most likely, 100% of the debt. Receiving a Chapter 7 Discharge legally relieves you from the obligation, but not other debtors. Further, you mentioned a vehicle: if you file a Chapter 7, you must continue to make the payments on the vehicle or you will lose the property. Further, if there are any arrearages on the loan, you will need to satisfy the arrearage or you will lose the property. Finally, if you file a Chapter 7, one of the documents is entitled, "Statement of Intention." On this document you must state whether you are seeking to "retain" the property (keep the car) or "surrender" the property (give it back). Also, you must state if you intent to "reaffirm the debt." If you want to keep the car and there is no arrearage, then a "Reaffirmation Agreement" must be filed with the court. After you file the case, the lender typically sends you this document, you complete the information and send it back to them. They then file the document. The Court then approves the reaffirmation of the loan.

Yes. Your bankruptcy filing will erase your liability on a debt, but will not erase someone else's liability as a co-signer or guarantor of the same debt.

The co-signer will remain liable