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

When you file for bankruptcy, your co-signers may be affected. In Hawaii, if you have co-signed for any debts, those co-signers may be held responsible for those debts if you declare bankruptcy. If your co-signers are not able to pay the debt, the consequences could be serious. When you file for bankruptcy, your creditors can still go after your co-signers for repayment of the debt. Creditors can file a lawsuit against your co-signers, and the court may order them to pay back the debt. Your co-signers may even have their wages garnished if the court awards a judgment against them. Fortunately, there are several steps that you and your co-signers can take to try to help protect them if you decide to file for bankruptcy. For example, if you cannot pay the debt, you can try to negotiate a settlement with the creditor to reduce the amount owed. You and your co-signers can also set up a payment plan so that your co-signers can make payments over time. It is important to note that filing for bankruptcy can have serious consequences for both yourself and your co-signers. It is important to get professional advice from a qualified individual or legal professional before making any decisions about bankruptcy. They can help you understand your rights and options and determine the best course of action for you and your co-signers.

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

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