Will my co-signers be absolved if I file for bankruptcy? 7 Answers as of February 04, 2011

My 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?

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Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
No, your cosigners will not be absolved.
Answer Applies to: California
Replied: 2/4/2011
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
No. Only you will receive a discharge of your debt obligations.
Answer Applies to: California
Replied: 11/30/2010
Maclean Chung Law Firm
Maclean Chung Law Firm | David H. Chung
No your parents will not be absolved. They are liable to the credit card company separately from you.
Answer Applies to: California
Replied: 11/30/2010
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
No for chapter 7, yes for chapter 13 but only if the creditors are paid in full in the plan.
Answer Applies to: South Dakota
Replied: 11/27/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Filing bankruptcy for yourself does not affect the liability of anyone else, including co-signers. If it could, there would be no reason for there to be co-signers.
Answer Applies to: California
Replied: 11/27/2010
    Ursula G. Barrios Law
    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
    Replied: 11/26/2010
    Mankus & Marchan, LTD
    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
    Replied: 11/25/2010
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