Is there a form of bankruptcy that protects cosigners and where to start? 11 Answers as of August 27, 2015

Is there a form of bankruptcy that protects cosigners?

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Chapter 13's. Meet with an experienced BK lawyer. Any BK lawyer worth their salt will charge you for the consultation, but you need options and information right now. Bring the co signor to the meeting.
Answer Applies to: Colorado
Replied: 6/24/2015
Ronald K. Nims LLC | Ronald K. Nims
Chapter 13 protects cosigners but the level of protection varies with where you live. In every state, cosigners are protected from any collection actions or contacts during the bankruptcy (Chapter 13s last 3 to 5 years). In some courts, debts with cosigners are paid off before debts without cosigners. So the debt would likely be gone by the time the Chapter 13 is over. In other courts, debts with cosigners are lumped together with other debts and, usually, all get paid only a percentage. After the chapter 13, the cosigner would remain liable for the unpaid portion of the debt.
Answer Applies to: Ohio
Replied: 6/23/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
No such thing. You can file a ch13 and for so long as you are in ch13 the creditors have to leave the co-debtor alone. But the debt remains and the creditor can start collection actions after case discharged, converted to ch7 or dismissed.
Answer Applies to: California
Replied: 6/23/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
No, co signors remain liable for the debts.
Answer Applies to: New York
Replied: 6/23/2015
Patrick W. Currin, Attorney at Law | Patrick Currin
That would be a no.
Answer Applies to: California
Replied: 8/27/2015
    Stephens Gourley & Bywater | David A. Stephens
    Not unless they are married and in a community property state. Chapter 13 does provide more protection for cosigners.
    Answer Applies to: Nevada
    Replied: 6/23/2015
    Scott Goldstein | Scott Goldstein
    Chapter 13, in certain instances. You need an attorney to help you with this one. If you file a chapter 13 on your own, you will most likely end up with your case getting dismissed and having no protection for anybody
    Answer Applies to: New Jersey
    Replied: 6/23/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    There is. In ch. 13 the stay of collection actions applies to co-signers, but only if your Ch. 13 Plan provides for full payment on the co-signed debt. Consult an experienced bankruptcy lawyer in your area. It's almost always a good idea.
    Answer Applies to: Wisconsin
    Replied: 6/22/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    There is a codebtor stay in chapter 13 because the debtor is attempting to repay the debt by monthly payments to the bankruptcy trustee. This codebtor stay can be lifted by the court in response to a creditor motion, but otherwise remains in place until the chapter 13 plan is completed or the case is dismissed. If you are just trying to discharge a codebtor's responsibility, then either chapter 7 or 13 would work for that purpose.
    Answer Applies to: Oregon
    Replied: 6/22/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    What do you mean, protect cosigners? No one can prevent you from paying off debts you have discharged in a bankruptcy but if you cosigned for someone going into bankruptcy, a promise to repay that debt anyway is meaningless. Sure would have helped if you had described the type of debt that was cosigned and whether you are the person wishing to file bankruptcy.
    Answer Applies to: Nevada
    Replied: 6/22/2015
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    There is not.
    Answer Applies to: Massachusetts
    Replied: 6/22/2015
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