bankruptcy - it's effect to your cosigner

by: www.newhorizon.org

● When filing for bankruptcy, it is

important to check the rules

especially if you have a co-

signer. Your co-signer was the

one who co-signed your debts

when you applied for it.

● Generally, a co-signer is

accountable to pay in case the

borrower defaults payments.

● If you are going to file for bankruptcy, will your co-signer still be required to pay for your debts?

CHAPTER 7 Bankruptcy● If you’re qualified to file for a Chapter 7

bankruptcy, you should know that your co-signer will not be exempted from the obligation.

● A Chapter 7 bankruptcy will discharge you from your debts but not your co-signer.

● Technically, your creditors can still demand that your co-signer pays back your outstanding debts.

CHAPTER 13 BANKRUPTCY● A co-signer is only protected from liability

with a Chapter 13 bankruptcy.

● However, a chapter 13 bankruptcy will not discharge the borrower from debt repayment.

● Instead, he/she will be given a repayment plan to pay back creditors.

● Under the new Bankruptcy Law, a repayment plan will last for five years.

● Here’s for more information about the effects of bankruptcy to your co-signer

http://www.newhorizon.org/credit-info/bankruptcy-and-the-protection-of-your-co-signer/

● Also consider this before you file for bankruptcy

● If you are looking for debt consolidation loan, click here http://www.newhorizon.org/Info/debtconsolidation.htm

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