What happens if I don’t file bankruptcy, am I stuck with the debt? 26 Answers as of May 28, 2013

My friend and I purchased a timeshare together. Our fell apart, but he said he would pay the bill but couldn’t because he lost his job. Now the timeshare debt is in collections. My friend wants to file bankruptcy to discharge the debt.

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

Free Case Evaluation by a Local Lawyer: Click here
Dan Wilson Bankruptcy
Dan Wilson Bankruptcy | Dan Wilson
If you are on the promissory note you are liable for the debt.
Answer Applies to: Colorado
Replied: 1/21/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
So they will look to you for payment. That is the role of co-borrower.
Answer Applies to: California
Replied: 1/21/2013
Law Offices of Joseph A. Mannis
Law Offices of Joseph A. Mannis | Todd Mannis
Yes, if he files, that would leave you as the sole person liable.
Answer Applies to: California
Replied: 1/18/2013
Davis Law SC | D. Nathan Davis
The answer is pretty simple. The creditor is likely to come after you for the debt if the debt is discharged in a bankruptcy by your friend. You signed a document that probably makes you liable for the entire debt if the other person does not pay the debt. Of course, it is possible that you signed only as a buyer and your friend is the only one liable for repayment. You need to have an attorney review the document to determine if you are liable and whether you are liable for the entire debt or only a portion of the debt.
Answer Applies to: South Carolina
Replied: 1/18/2013
The Law Office of Marvin Wolf
The Law Office of Marvin Wolf | Marvin Wolf
Bankruptcy does not make a debt go away, it only discharges the liability of the person filing to pay it. If someone else is on the same debt, the creditor may try to collect against them. There are two types of timeshares, one that operates by contract, and the other is a sale involving a deed. It is hard to get rid of a deed, because title is in a debtor's name, and post bankruptcy timeshare fees will continue to accumulate, even against someone who filed. In those cases, there are ways to sell the timeshare back to the company.
Answer Applies to: New Jersey
Replied: 1/16/2013
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    Any contract remains enforceable until the debt is paid in full, negotiated or a bankruptcy is filed by the borrower/obligor. Your obligation to pay the debt will not go away even if a co-borrower files for bankruptcy. Be careful.
    Answer Applies to: Arizona
    Replied: 1/16/2013
    Bruning & Associates, PC
    Bruning & Associates, PC | Kevin Bruning
    If you owe debt and have a co-debtor, and the co-debtor files for bankruptcy, then yes, usually you will be responsible for the debt yourself due to the other debtor's bankruptcy, unless the debt is found non-dis chargeable in bankruptcy or the discharge is denied.
    Answer Applies to: Illinois
    Replied: 1/16/2013
    Hayward, Parker, O'Leary & Pinsky, Esqs.
    Hayward, Parker, O'Leary & Pinsky, Esqs. | Michael O'Leary
    If your friend files bankruptcy he should obtain a Discharge of his obligation to repay the timeshare debt. If you were jointly obligated on the debt with your friend, you will be then obligated for the entire balance due.
    Answer Applies to: New York
    Replied: 1/16/2013
    Law Office of Susan G. Taylor
    Law Office of Susan G. Taylor | Susan G. Taylor
    Yes, you will still be liable for that secured debt if your friend files ch. 7 bankruptcy. The timeshare group might settle for a deed in lieu of foreclosure and forgive the remaining debt. If not, perhaps you can negotiate a settlement.
    Answer Applies to: Texas
    Replied: 1/16/2013
    Law Office of Christian F. Paul
    Law Office of Christian F. Paul | Christian F. Paul
    The short answer is yes, you still owe the debt even if your co-owner does not because of his bankruptcy. Bankruptcy can discharge debts such as loans made to purchase real estate, but the trust deed holder still has the right to foreclose on the property if payments aren't made. If your timeshare mortgage payments are not made in full, whether by you, your co-owner, or both, you can expect to see a notice of default and eventually foreclosure and sale of the property. (Maybe you already received a notice of default. Is that what you mean by "in collections"?) You will need to work this out with your co-owner, and determine whether you want to keep paying for the timeshare, let it go in foreclosure, sell it to someone else, buy out your friend's share, or otherwise handle it. If you cannot afford the timeshare and have other debts, an appointment with a local bankruptcy attorney might help you decide how to handle your affairs.
    Answer Applies to: California
    Replied: 1/15/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Your friend's bankruptcy will not affect your legal obligation to pay the debt. Lots of people that co-sign a debt for someone else find that having made this decision ruins their credit and their friendship. It can be an expensive lesson to learn.
    Answer Applies to: Nevada
    Replied: 1/15/2013
    Tony M. May Attorney At Law
    Tony M. May Attorney At Law | Tony M. May PC
    If you both agreed to be liable for the debt, then yes, you would be stuck with the debt if your friend filed bankruptcy and was granted a discharge from the timeshare debt.
    Answer Applies to: Nevada
    Replied: 1/15/2013
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If you do not file for bankruptcy, you owe the debt. The company will have the right to come after you.
    Answer Applies to: California
    Replied: 1/15/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    The short answer is that yes, you will remain obligated for the debt (and the maintenance fees as long as you are an owner).
    Answer Applies to: Colorado
    Replied: 1/15/2013
    Guardian Law Group PLLC
    Guardian Law Group PLLC | C. David Hester
    Yes, if you are both jointly liable then when they file bankruptcy you will then be solely liable for the debt. You could file bankruptcy to remove the debt, but it may not be the best decision. You can contact me for a free consultation.
    Answer Applies to: Utah
    Replied: 1/15/2013
    Law Office of Sean P Fleming
    Law Office of Sean P Fleming | Sean P Fleming
    If your friend files bankruptcy, that will leave you responsible for the debt.
    Answer Applies to: Illinois
    Replied: 1/15/2013
    Colorado Bankruptcy Law Group, LLC | Peter Mullison
    As a co-debtor, if your friend files bankruptcy the timeshare company can pursue you to collect the debt. If you file bankruptcy, they can not collect the debt. Otherwise you will have to find a way to pay them.
    Answer Applies to: Colorado
    Replied: 1/15/2013
    Law offices of John P. Brooke | John Brooke
    If you are a co-signor for the debt you are responsible to pay it and your ex-boyfriend's filing for bankruptcy only discharges his personal obligation on the debt. The company can still pursue collections against you and potentially sue you for any amount owed. Depending on the amount owed you may want to consider filing for bankruptcy yourself. You should consult with a local, experienced attorney before proceeding. You may also want to consider working out a settlement with the timeshare company.
    Answer Applies to: New York
    Replied: 1/15/2013
    214bankruptcy.com
    214bankruptcy.com | Rustin Polk
    If your friend files bankruptcy and receives a discharge of the timeshare debt, it has no real effect on you. The bankruptcy does not discharge the actual debt. Instead, the bankruptcy discharges his personal liability on that debt and blocks the creditor from pursuing him for the debt. The underlying debt will still exist and they are allowed to continue pursuing you for it if that's what they want to do.
    Answer Applies to: Texas
    Replied: 1/15/2013
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Yes, if he files bankruptcy and discharges his obligation on the timeshare mortgage, you solely are responsible for 100% of the mortgage, association dues, etc, assuming that you don't also file bankruptcy on your share of the timeshare also. Sorry!
    Answer Applies to: Michigan
    Replied: 1/15/2013
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    If you don't file, you are stuck with the debt (100% of it).
    Answer Applies to: California
    Replied: 1/15/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Yes, you are joint and severally liable which means you are still on the hook for the debt unless you also file a bankruptcy or settle the debt.
    Answer Applies to: New York
    Replied: 1/15/2013
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    Perfectly legal for him to file and yes, you would be liable for the debt.
    Answer Applies to: New Jersey
    Replied: 1/15/2013
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney