If it legal for the bank to make my cosigner cover our loan after I filed bankruptcy? 20 Answers as of February 27, 2011

I filed bankruptcy in 2004 and put an auto loan on it. Now in 2011 the bank sent my cosigner for the loan papers to pay the loan. Is this legal?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
Yes, it is legal for the bank to sue your cosigner and demand payment from him, regardless of whether or not you have filed bankruptcy.
Answer Applies to: California
Replied: 2/27/2011
Goodman, Dicus, and Teinert, LLP
Goodman, Dicus, and Teinert, LLP | Scott W. Dicus
If someone else cosigned a loan or otherwise took on a joint obligation with you, that person can be held wholly responsible for the debt if you don't pay it. If you received a Chapter 7 discharge, you may no longer be liable for the debt, but your cosigner will still be liable.
Answer Applies to: California
Replied: 2/27/2011
Law Offices of Dennis Baranowski
Law Offices of Dennis Baranowski | Dennis Baranowski
You bankruptcy filing does not affect third parties, including cosigners. Unless your cosigner filed a bankruptcy and received a discharge, that individual would still be liable for the debt. Assuming that you surrendered the vehicle in the bankruptcy, the lender may have statute of limitations issues if no lawsuit has been filed against the cosigner. Without knowing additional facts, it is difficult to provide a more thorough assessment of the situation. An experienced attorney will be able to assist the cosigner and advise him or her of their rights and obligations.
Answer Applies to: California
Replied: 2/23/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
Discharge of a debt is personal to the filer. A cosigner remains liable on the debt if that person does not file bankruptcy.
Answer Applies to: California
Replied: 2/23/2011
Uriarte & Wood, Attorneys at Law
Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
They have a right to request payment form the guarantor as your discharge does not affect a co-debtor's liability. However given the length of time that has elapsed from the discharge, the creditor may have a statute of limitations problem which would make it unlikely that a suit would be filed.
Answer Applies to: California
Replied: 2/23/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    Yes.
    Answer Applies to: South Dakota
    Replied: 2/22/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Yes.
    Answer Applies to: California
    Replied: 2/22/2011
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    Yes, it is legal.
    Answer Applies to: Tennessee
    Replied: 2/22/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Yes - that is what a co-signer is for.... The bank would normally be able to collect from either one of you the full amount owed. However, the bank cannot collect from you because of your bankruptcy so it will go after the co-signer. If you still have the car then the bank can repossess the vehicle and collect the deficiency (what is owed after the vehicle is sold at auction) from the co-signer who has not filed for bankruptcy. If you returned the car or it was taken by the bank the bank can now go after the co-signer for the deficiency.
    Answer Applies to: California
    Replied: 2/22/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    The creditor can collect against co-signor if they did not file for BK and as long as co-signor has no valid defenses.
    Answer Applies to: California
    Replied: 2/22/2011
    Gresham Family & Bankruptcy Law
    Gresham Family & Bankruptcy Law | Lillian Suelzle Watson
    Yes, you are each "jointly and severally" liable for debts you co sign. This means you are each liable for the entire debt. Your bankruptcy means that you are not responsible for the debt, but your co signer is responsible for the entire obligation.
    Answer Applies to: Oregon
    Replied: 2/22/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, it is legal. That is why they have co-signers, so they have another person to go after if you default.
    Answer Applies to: California
    Replied: 2/22/2011
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    Yes, that why the bank wants a co-signer.
    Answer Applies to: California
    Replied: 2/22/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Without reviewing the payments or knowing the identity of your cosigner, I have to answer generally: It is normally legal for a creditor to try to collect from a co-signer. Indeed, that is the whole purpose of requiring a cosigner.
    Answer Applies to: California
    Replied: 2/22/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    The debt itself was not extinguished in 2004, only your obligation to pay on it. Since there is a co-signer, the bank may pursue all debtors for payment.
    Answer Applies to: California
    Replied: 2/22/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    Yes they can.
    Answer Applies to: Alabama
    Replied: 2/22/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Yes, that is the purpose of a cosigner. They guarantee the loan. So, your cosigner might also need to file for bankruptcy.
    Answer Applies to: California
    Replied: 2/22/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Of course it's legal. That's what a cosigner is for. Your bankruptcy doesn't affect the obligations of anyone other than yourself.
    Answer Applies to: California
    Replied: 2/22/2011
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