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

In Kansas, if you file for bankruptcy, your co-signers may be affected. Your co-signers are liable to the lender for the debt that you default on. If you file for bankruptcy, the debt that you co-signed may be discharged, meaning the lender cannot collect it from you or your co-signers. However, this does not necessarily protect your co-signers. If you have a joint debt, the lender can still seek payment from your co-signers. In addition, if the bankruptcy court rules that you have fraudulently obtained credit, your co-signers may be liable for the debt. It is important to note that creditors may not always pursue repayment from your co-signers. This may depend on the type of bankruptcy you are filing for. Generally, if you are filing a Chapter 7 case, the debt is discharged and the creditor cannot demand payment from your co-signers. If you are filing a Chapter 13 case, the creditor may still seek payment from your co-signers. Therefore, if you are considering filing for bankruptcy, it is important to communicate with your co-signers and discuss the potential implications. It is also important to understand what type of bankruptcy you are filing and to be aware of the process and legal implications.

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

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