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If you claim chapter 7 bankruptcy can they go after your cosigner for money?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoUnfortunately 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.
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If I have have won a money settlement can a 20 year old chapter 7 bankruptcy make a claim against the funds?
No
If your company is owed money from a company that goes into Chapter 11 what do you need to do?
If a company goes into a Chapter 11 owing your company money, you need to submit a claim to the bankruptcy court yesterday.
If one files bankruptcy and has a co-signer will if affect their credit rating?
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.
Can a lender make you pay for a loan for which you co-signed if the borrower filed a Chapter 7 bankruptcy and is no longer making payments?
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.
If you are a cosigner on a vehicle and the other person gets the vehicle repossessed then files for bancruptcy what happens to the cosigner?
you are still liable for that loan. the lender may decide to not accept the bankruptcy charge and go after you for the money.
I need to know how to file bankruptcy.?
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.
Is a cosigner still responsible if the first party filed bankruptcy but reaffirmed the car loan?
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.
My fiance filed chapter 11 bankruptcy and now we want to get married can the court trustee demand more money?
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.
What can a trustee take during chapter 13 bankruptcy?
Money for your plan payment, tax refunds.
If you inherit money after a ch 7 bankruptcy how much time must pass before I have to pay said money to my creditors?
If your bankruptcy is over....it's over. There is no claim to what ever you get in the future.
How does a client get their money back if the business files for bankruptcy?
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.
On bankruptcy schedule d what does it mean when the value of the property is 5000 but the claim is 1000 what is the secured portion?
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.
