How can I protect co-signers from being affected by my bankruptcy?

One way to protect co-signers from being affected by your bankruptcy is to pay off the debt yourself. If you’re able to pay the debt in full prior to filing for bankruptcy, your co-signer will no longer be liable for the debt. However, this is not always possible. If you have already filed for bankruptcy and your co-signer is still liable for your debt, you may be able to use the Maryland Co-Signer Stay Law. This law allows the court to stay (or stop) creditors from collecting on the debt from your co-signer. The court may also extend the stay if needed. There are certain requirements that must be met in order for the court to grant the stay. You must have filed for Chapter 7 or Chapter 13 bankruptcy, and you must have had the debt in good standing when you filed for bankruptcy. The co-signer must have a legal obligation to pay the debt, and the debt must not have been discharged due to fraud or misconduct. If you meet these requirements, you can petition the court for a Co-Signer Stay. This is an important step in protecting your co-signer from being affected by your bankruptcy. It is important to consult with a licensed bankruptcy attorney to make sure all of the requirements are met and to learn more about the process.

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How can I protect co-signers from being affected by my bankruptcy?

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