ARE CO-SIGNERS PROTECTED?

Do you have a cosigned loan that you cannot afford? Call me to see what your options are. I have helped thousands of individuals mange their debt with peace of mind. Call us at 210-930-7000 schedule your free Debt Consultation.

Primary borrowers and co-signers are equally responsible for the debt that is being incurred. Most individuals believe that if they are second on a note, that they are not equally liable for the debt.

If you are considering a Chapter 7 bankruptcy, please remember that bankruptcy protection is only for the person who files. All cosigners will be held liable for the debt that is discharged through a bankruptcy. Again, this is true whether or not a bankruptcy case is filed. A creditor can collect equally between the primary borrower and the cosigners. According to the contract with the creditor, the creditor would be able to proceed against them according to the debt agreement.  Only the person filing a Chapter 7 bankruptcy would be protected against any collection efforts.

There is a way to PROTECT your co-signers: File a Chapter 13 bankruptcy and provide full payment for the co-signed debt! By doing so, your co-signer will be protected while the case is active and after the case is over. 

Need Help Understanding All Your Options?

Want To See How Bankruptcy Might Benefit You?

Call 210-930-7000 To Schedule Your Free Debt Consultation.