If it legal for the bank to make my co-signer cover our loan after I filed bankruptcy and why? 16 Answers as of September 03, 2015

I filed bankruptcy in 2009 and put an auto loan on it. Now in 2010 the bank sent my cosigner for the loan papers to pay the loan. Is this legal?

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Unfortunately, yes. You filed BK, not the consignor. This is exactly why lenders want consignors!
Answer Applies to: Colorado
Replied: 9/3/2015
Novakov & Associates, PLLC
Novakov & Associates, PLLC | LINDA S. NOVAKOV
Yes. That is the purpose of a co-signer. If one party cannot, the co-signer becomes responsible for the debt.
Answer Applies to: Kentucky
Replied: 9/3/2015
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
This question, based on events in 2010, reaches me in August 2015. I assume this problem has long since been resolved. If I am missing something, please re-post your question with more information.
Answer Applies to: Wisconsin
Replied: 9/3/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
Yes. That is the purpose of a co-signer. If the obligor can't pay then the co-signer is liable. The bankruptcy usually only discharges your personal liability not the lien or that of the co-signer. If you have questions about the bankruptcy contact your attorney who knows all the facts of your situation.
Answer Applies to: California
Replied: 9/3/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, each signor is "joint and severally liable"; so you are both liable for 100% of the loan until it is paid.
Answer Applies to: New York
Replied: 9/3/2015
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    Yes it is legal. When a person agrees to co-sign on a debt, they agree to be responsible for re-payment of that debt. If the loan is not paid by one party, the creditor can seek payment from the other. If you received a discharge in BK but the co-signor hasn't joined you as a spouse in your BK or filed their own BK and received a discharge, the co-signor's obligation remains post your BK. In other words, your BK protection doesn't extent do other people who agreed by contract to be responsible for repayment.
    Answer Applies to: California
    Replied: 9/3/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes. That is the purpose of a "co-signer" - to give the lender a second person to go after if you don't pay. This is the most commonly asked question I get.
    Answer Applies to: California
    Replied: 9/3/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    The co-signer guaranteed that s/he would pay the loan if you did not pay. So what do you think was the purpose of requiring a co-signer other than to make sure this debt would be paid if you did not pay?
    Answer Applies to: Nevada
    Replied: 9/3/2015
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    Yes if the co signer did not file bankruptcy they can.
    Answer Applies to: New York
    Replied: 9/3/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Yes, the purpose of a co-signer is to provide another guarantor for the loan. They remain liable unless they also file bankruptcy.
    Answer Applies to: Oregon
    Replied: 9/3/2015
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Yes. That's why they call it co-signing. Your bankruptcy discharges YOUR obligation, not that of the co-signer.
    Answer Applies to: California
    Replied: 9/3/2015
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Prior to filing bankruptcy you and the co-signer were legally obligated to pay the loan. When you filed bankruptcy you were discharged from your legal obligation to pay the loan. Your bankruptcy did not affect the obligation of the co-signer. The co-signer remains legally obligated until they pay the loan, the statute of limitations runs or the co-signer files bankruptcy. That is why the lender required a co-signer.
    Answer Applies to: California
    Replied: 9/3/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    Yes it is legal unless the co-signer also filed bankruptcy.
    Answer Applies to: Virginia
    Replied: 9/3/2015
    Stephens Gourley & Bywater | David A. Stephens
    The co-signer was not discharged by your discharge and is still liable for the debt.
    Answer Applies to: Nevada
    Replied: 9/3/2015
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    Yes. That is the reason that creditors get co-signers. So that when the principal defaults, there is someone else to pursue.
    Answer Applies to: Washington
    Replied: 9/3/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Yes, they cannot collect from you so they must look to the co-signer.
    Answer Applies to: California
    Replied: 9/3/2015
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