Typically, yes. When a person co-signs a loan they are EQUALLY responsible for the debt. When one party files for bankruptcy they are not going to be responsible for payment unless it falls within a category of non dischargeable debts (in which case they would) but you should let them know of the almost certain liability. Beyond the requirement to pay for the debt, the cosigner may also have to pay late fees or collection costs associated with a default on the loan. The creditor can use the same collection methods against the cosigner as against the primary borrower. If the primary borrower doesn't pay and goes into default, it will ruin the cosigners credit.
Cosigning on another person's debt may affect your own ability to receive loans. The debt is also considered yours and raises your own outstanding balance. Cosigning a loan for a son or daughter might affect your estate or gift tax exemptions.
Unfortunately yes, and not paying the debt will result in tremendous negative consequences for you. Below are a list of some problems specifically associated with co-signing a loan that becomes subject to a bankruptcy proceeding. * If the primary borrower does not pay his debt, you will have to. In some states, the creditor can come straight to you, as a cosigner, before going to the borrower.
* You may also have to pay late fees or collection costs associated with a default on the loan.
* The creditor can use the same collection methods against you as against the primary borrower.
* If the primary borrower doesn't pay and goes into default, it will ruin your credit.
* Cosigning on another person's debt may affect your own ability to receive loans. The debt is also considered yours and raises your own outstanding balance.
* Cosigning a loan for a son or daughter might affect your estate or gift tax exemptions.
No
If a company goes into a Chapter 11 owing your company money, you need to submit a claim to the bankruptcy court yesterday.
If the account the cosigner is on is included in the bankruptcy it will appear on their credit report. In most cases the cosigner will not be relieved of the debt when the primary holder files for bankruptcy. The creditor(s) can then pursue the cosigner for the collection of money owed.
You guaranteed to pay the loan if the primary borrower does not. That is what a cosigner does. The lender is going to be looking at you for their money.
you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.
You need to contact a bankruptcy lawyer since you need to have one to file. Which chapter depends on how much money you have, you may not qualify for chapter 7 if you have too much money.
The company wants their money so if the primary doesnt pay then the cosigner must. Their is no way of getting around this. Bankruptcy should be outlawed. If you cant afford things dont take on the debt.
Make sure that it was a chapter 11 and not a chapter 7 or a chapter 13. Many times there are no trustees in a chapter 11 and chapter 11 is almost always a larger business bankruptcy.
Money for your plan payment, tax refunds.
If your bankruptcy is over....it's over. There is no claim to what ever you get in the future.
It depends on the chapter they filed and the financial state of the company, most likey not, that is why the filed for bankruptcy, they have no funds.
If the property is worth $5,000 and there is a claim on it for $1,000, there is equity of $4,000, which will have to be paid to the trustee or exempted (in a Chapter 7). The $1,000 claim will be the secured claim, assuming it is in fact secured by a mortgage, purchase-money loan agreement, judgment levy or other security.