How does my bankruptcy affect co-signers? 4 Answers as of November 12, 2010

My parents were co-signers on my credit card when I opened the account way back in college. Now I am filing for chapter 7 bankruptcy, and I want to know how this will affect them. The creditors have been harassing them even though I have told them that they do not have anything to do with the loans, and I am wondering if the bankruptcy will relieve them of any connection with that debt or if they will have consequences because of my bankruptcy.

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Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
I would expect them to be liable for the debts, that's what co-signing is all about.
Answer Applies to: South Dakota
Replied: 11/12/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Your filing bankruptcy only relieves you of your debt. If filing bankruptcy relieved other people of their debts, only one person in the USA would need to file a bankruptcy case, and everyone else would benefit from it. That is the whole reason a co-signer is required, so that they are responsible in the event you default on your payments.
Answer Applies to: California
Replied: 11/11/2010
Law Offices of Geoffrey Nwosu
Law Offices of Geoffrey Nwosu | Geoffrey Nwosu
Your parents as your co-signers will be responsible after you obtain a chapter 7 discharge. They signed to be responsible for the unsecured credit card debts upon your failure to make full payment. It is more likely that the credit card company will continue going after your parents to recover full payments for the debts owed..

One option will be for your parents to file bankruptcy too. However, they may not qualify depending on their financial situation. Please consult a bankruptcy lawyer in your area to discuss other options that may be better for you. We are located in San Jose, California or visit us at our website.
Answer Applies to: California
Replied: 11/11/2010
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