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

If you file for bankruptcy in Delaware, your co-signers may be affected, depending on the type of bankruptcy that is filed. If you are filing Chapter 7 bankruptcy, your co-signers may have to pay off the debt. In Chapter 7, the court will take and sell your assets to pay off your creditors, including any co-signers. The co-signers are then responsible for any remaining balance on the debt. On the other hand, if you file a Chapter 13 bankruptcy, your co-signers will not be responsible for any remaining debt. Under Chapter 13, you may be able to make a repayment plan to pay off your creditors, including any co-signers. The court may approve a plan that allows you to pay off the debt over time, depending on your income and other financial circumstances. In either case, it is important to speak to an attorney who can help you understand the implications of filing for bankruptcy and the impact it will have on your co-signers.

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

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