What will happen to my co-signers if I file for bankruptcy?

If you file for bankruptcy in California, your co-signers will be affected. Co-signers are people who have agreed to be legally liable for a loan or debt if you are unable to pay it. When you file for bankruptcy, the debt you owe to your co-signers can be discharged through the bankruptcy process. This means that you and your co-signers will no longer owe the debt and will no longer be legally responsible for it. Your co-signers may still be affected by your bankruptcy filing in other ways, though. Depending on the type of loan or debt, the lender or creditor may pursue your co-signers after you have filed for bankruptcy. If this occurs, your co-signers will be responsible for the remaining debt or loan that you are unable to pay. In other cases, your co-signers may be pursued by collection agencies after you have filed for bankruptcy. Collection agencies are companies that are hired by lenders or creditors to collect any unpaid debts. They may try to get your co-signers to pay the remaining debt that you are unable to pay. If your co-signers don’t pay the debt, the collection agency may take legal action against them. It is important to keep in mind that if you file for bankruptcy, your co-signers may be affected in one way or another. Before filing for bankruptcy, speak with a bankruptcy attorney to learn more about how your co-signers will be affected.

Related FAQs

How will filing for bankruptcy affect my credit score?
How does filing for bankruptcy affect my retirement benefits?
Does filing for bankruptcy stop foreclosure proceedings?
What is the difference between discharging and writing off a debt?
How do I fill out the bankruptcy forms?
Can I keep my car when filing for bankruptcy?
What are the advantages and disadvantages of filing for bankruptcy?
What is the 341 meeting of creditors?
Are there any assets that I cannot keep after filing for bankruptcy?
Are there any assets that I will not be able to keep in bankruptcy?

What will happen to my co-signers if I file for bankruptcy?

Related FAQs

Related Blog Posts