What is my liability if I sign on as a guarantor on a personal bankruptcy? 16 Answers as of July 11, 2013

My sister is starting the process of a personal bankruptcy. She asked if I would be a guarantor? What could/would be my liability? Would it go on my credit report?

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Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
There is no such thing as a guarantor on a personal bankruptcy, not sure what you are being asked. If she is asking you to personally guaranty a debt on an asset which she is trying to keep in a bankruptcy such as a home or a car then your liability would be for the amount of the debt. I would not do this because if she stops paying you will be required to do so and the creditor could come after you for the debt. If the case is a Chapter 13 you can file a declaration in support of the plan if you are going to help the debtor pay her trustee payment.
Answer Applies to: California
Replied: 10/20/2011
AZ Law Group of Trezza & Associates
AZ Law Group of Trezza & Associates | Stephen Trezza
How do you guarantee a bankruptcy?
Answer Applies to: Arizona
Replied: 7/11/2013
Guardian Law Group PLLC
Guardian Law Group PLLC | C. David Hester
There is no such thing as a guarantor on a personal bankruptcy, not sure what you are being told. If she is asking you to personally guaranty a debt on an asset which she is trying to keep in a bankruptcy such as a home or a car then your liability would be for the amount of the debt. I would not advise doing this since if she stops paying you will be required to do so and the creditor could come after you for the debt.
Answer Applies to: Utah
Replied: 10/12/2011
Law Office Of Magnolia Zarraga
Law Office Of Magnolia Zarraga | Magnolia Zarraga
By signing you are making yourself responsible to pay her attorney fees should she fail to do so. It shouldn't be reported on your credit report, unless she fails to pay and you also fail to pay, then they can sue you for the money and that would eventually make it on your credit report. You probably love your sister, but the fact is she has a history of financial issues, thus she is now filing bankruptcy. Are you willing and able to pay her attorney fees if she doesn't? If not, then don't sign.
Answer Applies to: California
Replied: 10/28/2011
Ashman Law Office
Ashman Law Office | Glen Edward Ashman
What she is doing is either illegal or a very bad idea. Tell her no, unless you feel like paying her debts.
Answer Applies to: Georgia
Replied: 10/28/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    There is no procedure to sign as a guarantor for a bankruptcy filing. If the case is a chapter 13 you can file a declaration in support of the plan if you are going to help the debtor pay her trustee payment.
    Answer Applies to: California
    Replied: 10/11/2011
    Law Offices of Robert P. Taylor
    Law Offices of Robert P. Taylor | Robert P. Taylor
    Generally, if you gaurentee a loan for anybody and they file a Chapter 7 bankruptcy, you are responsible for the unpaid balance of the loan. If you don't pay the balance, it can be reported as a delinquent item on your credit report. Wish I could tell you something more postive but I can't.
    Answer Applies to: California
    Replied: 10/11/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    A guarantor of what? There is no guarantor in a bankruptcy unless she is not paying her attorneys fees in full before filing. Since she would be discharged of her debts, including bankruptcy attorneys fees not paid before filing, if you guaranty them and she doesn't pay, they can look to you to pay any amount she doesn't, including suing you for the money.
    Answer Applies to: California
    Replied: 10/11/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Why would you guarantee a bankruptcy?
    Answer Applies to: California
    Replied: 7/8/2013
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    There is no reason for anyone to be a guarantor in a bankruptcy. If you guarantee some borrowing by your sister you become equally liable to her, and the liability is likely to show on your credit report.
    Answer Applies to: California
    Replied: 10/11/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    There is no such thing as a guarantor in bankruptcy so this must be a misunderstanding by you or your sister. Hopefully she has a lawyer that will represent her and not attempt to file by herself.
    Answer Applies to: California
    Replied: 10/11/2011
    Foster Law Group
    Foster Law Group | William Foster
    There is no such thing as a person guarantor to a bankruptcy.
    Answer Applies to: Colorado
    Replied: 7/8/2013
    Eliza Ghanooni, Attorney at Law
    Eliza Ghanooni, Attorney at Law | Eliza Ghanooni
    Perhaps she asked you to contribute funds to her plan payment? I have never heard of someone being a guarantor on someone's bankruptcy. If she did ask you to sign a contribution declaration, you are telling the court that you intend to help her. However, if you are unable to help her in the future, you wont be liable for your inability to do so. Regardless, you should have an attorney review any kind of paperwork you are signing.
    Answer Applies to: California
    Replied: 10/11/2011
    Heupel Law
    Heupel Law | Kevin Heupel
    If you sign as a personal guarantor and your sister does not pay the debt, then you would be responsible for the payment. I never recommend that people cosign or personally guarantee the debts of another person, especially family. While we would like to help them, it's not worth the risk of guaranteeing something that could make your situation worse.
    Answer Applies to: Colorado
    Replied: 10/11/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    It sounds like you are mixing two separate concepts up. You guarantee or co-sign a loan. You do not guarantee or co-sign on a bankruptcy.
    Answer Applies to: California
    Replied: 10/11/2011
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