If a person files bankruptcy is cosigner responsible for loan? 40 Answers as of June 02, 2013

My wife needs to file and I am cosigner on loan. am I responsible?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Debt Relief Law Center | Roger J. Bus
Yes.
Answer Applies to: Michigan
Replied: 5/30/2013
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
A co-signer is obligated to pay if the primary borrower defaults.
Answer Applies to: California
Replied: 3/12/2012
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Yes.
Answer Applies to: California
Replied: 3/8/2012
The Law Office of Marvin Wolf
The Law Office of Marvin Wolf | Marvin Wolf
Generally, a Chapter 7 bankruptcy does not extinguish a debt; it only insulates the debtor from collection efforts, so if someone else is liable on the debt, the creditor can seek payment from the co-signer. There is a form of bankruptcy - Chapter 13 - where creditors are paid something over time, so that any jointly owned debts can be separately classified and paid in full during the case - it stops collection efforts during the period of the plan and at the end of the case, that particular debt has been paid in full, so the creditor does not go after the co-signer.
Answer Applies to: New Jersey
Replied: 3/8/2012
Gary C. Harris | Gary C. Harris
Yes.
Answer Applies to: Georgia
Replied: 5/30/2013
    Paul Stuber, Attorney at Law
    Paul Stuber, Attorney at Law | Paul Stuber
    Yes you are still responsible.
    Answer Applies to: Colorado
    Replied: 3/7/2012
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    Yes.
    Answer Applies to: Colorado
    Replied: 6/2/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Generally yes you are responsible.
    Answer Applies to: Michigan
    Replied: 3/7/2012
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Yes. That is the pitfall of co-signing.
    Answer Applies to: California
    Replied: 3/7/2012
    Neuhaus Law Office
    Neuhaus Law Office | Gregory M. Neuhaus
    Yes, a cosigner will be responsible if he/she does not also file to discharge the debt. Your wife's filing will, in effect, transfer the debt to you.
    Answer Applies to: Nebraska
    Replied: 3/7/2012
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    The short answer is YES. However you did not indicate whether the loan you co-signed for was a secured debt or whether you wife is going to continue to pay the debt. If you wife wil continue to pay, say on a car loan then you are fine. If the loan is unsecured and she intends to discharge the debt then you will probably end up paying the entire balance of the loan. This is what co-signers do. If the person you co-signed for defaults on the loan the lender simply looks at you to pay.
    Answer Applies to: California
    Replied: 3/7/2012
    Danville Law Group | Scott Jordan
    Yes.
    Answer Applies to: California
    Replied: 6/2/2013
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You are but any judgment against you could not be collected from the community property since your wife's discharge protects the community property, including your share of it. That will not keep the bank from being able to sue you but you can prevent collection of the judgment from community property. If there is no separate property then the judgment would probably be uncolletable. However, it will affect your credit and you will have a judgment against you that will show in your credit report. This is why many people in your situation try to settle the debt after the bankruptcy case is over.
    Answer Applies to: California
    Replied: 3/7/2012
    Twin City Attorneys, P.A. | Amy B. Norberg
    You will be responsible for the loan. After your wife receives her bankruptcy discharge, the lender can only go after you for the repayment.
    Answer Applies to: Minnesota
    Replied: 3/7/2012
    Haskell Law Firm | Lori Haskell
    Yes you are, unless you file bankruptcy with her.
    Answer Applies to: Michigan
    Replied: 3/7/2012
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    Yes. Spouses usually file together for this and several other reasons. Talk it over with an attorney. Many don't charge for the initial consult. Good luck.
    Answer Applies to: Ohio
    Replied: 3/7/2012
Click to View More Answers:
12 3 4 5 6 7 Free Legal QuestionsConnect with a local attorney