What Happens To My Co-Signed Debts After Bankruptcy?
This is one area that scares many consumers because they do not want to file bankruptcy if it would hurt those who helped them. Other times we encounter situations where the co-signer is being sued. Both situations can be addressed through bankruptcy.
Protecting Co-Signers Under Chapter 13
Fortunately you can prevent a lender from suing or collecting a consumer debt from the co-signers while you satisfy the obligation. A creditor may not commence or continue any lawsuits or collect any part of a consumer debt from someone who is jointly liable on such debt, even a spouse. At the same time, the monthly payment can frequently be lowered to a manageable amount.
Don’t take on your creditors alone!
Call or email the Counce Law Firm at 901-201-6012.
Free confidential consultation with a lawyer, not a paralegal.
We take the time to understand your needs and answer all of your questions. While we want to solve your problem quickly, it’s important that you are comfortable with the process, and understand how it will impact you. These thoughtful conversations enable us to ensure the best possible outcomes.
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Ridding Oneself Of Co-Signed Debts Under Chapter 7
As a general rule of thumb, you should never co-sign a debt you cannot pay back and that you do not follow to ensure that it is being paid. Most people know this rule, but find it is difficult to turn down a loved one in need.
You may find yourself in the unfortunate situation of having to pay the debts of the one you tried to help, and find yourself at risk of losing your own car and home with this added burden. Chapter 7 should be considered to relieve you of these co-signed debts and preserve your ability to maintain payments for your necessities.
One last bit of advice is to have your loved one protect you by paying the debt through a Chapter 13 plan so as not to bring you down financially. Why take the chance if your loved ones have other options to protect you?
Contact Us Today
Call now to learn about what options are available to you in your particular financial situation. Contact our Memphis law firm today online or call 901-201-6012 to schedule a FREE CONFIDENTIAL CONSULTATION.
Unlike many firms, with us you will always discuss your financial situation with an attorney, not a paralegal or assistant.
We are a Title 11 debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.