bankruptcy - it's effect to your cosigner
TRANSCRIPT
● 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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