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

If you file for bankruptcy in Colorado, your co-signers will be impacted. Co-signers are usually family members or close friends who have agreed to assume responsibility for the repayment of a loan or debt if the original borrower is unable to do so. When a debtor files for bankruptcy, their co-signers will likely be contacted by the lender. The bankruptcy court may discharge the debt owed by the debtor, which means that the lender cannot take any legal action against the debtor or the co-signers. But the lender can still attempt to collect from the co-signers. The lender can continue to attempt to collect until they receive a court order that the debt should not be collected. The bankruptcy court can also rule that the co-signers are responsible for paying the debt. This is a difficult situation for the co-signers and can have a big impact on their credit score. The co-signers may even be subject to lawsuits and wage garnishments. Since the filing of bankruptcy can have such an impact on co-signers, it is important for debtors to consult with a legal professional before filing. A lawyer can help debtors understand all the potential implications of filing for bankruptcy and can help find solutions that will limit the impact on their co-signers.

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

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