Will my co-signers be absolved if I file for bankruptcy? 7 Answers as of February 04, 2011My parents co-signed my credit card way back when I was 18 and opened it, and now creditors have been coming after them even though they have had nothing to do with the account for 10 years. If I file for bankruptcy, will they be absolved? Does it matter whether I file chapter 7 or chapter 13?
Ursula G. Barrios Law | Guillermo Machado
Statute of limitation defenses aside, the creditor will still be able attempt their collection efforts against your parents simply because they signed a contract. Your filing bankruptcy does not free your parents of liability.
Answer Applies to: California
Mankus & Marchan, LTD | Tony Mankus
Your bankruptcy will not absolve your parents of the debts they co-signed for. Both Chapter 7 and Chapter 13 have discharge provisions. You may want to choose Chapter 13 if you have "regular" income, you have equity in non-exempt property, and/or if your net income is greater than allowed under the "means test." It would be best to consult with an attorney as to your particular financial situation.
Answer Applies to: Illinois