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

If you file for bankruptcy in Maryland, your co-signers may be affected. A co-signer is someone who has agreed to be legally responsible for your debt if you cannot pay it off. When you file for bankruptcy, your co-signers are still legally responsible for the debt, even if the debt is discharged in the bankruptcy. This means that creditors may try to collect the debt from your co-signer, and if they do not pay, the creditor can take legal action against them. If your co-signer has assets, such as a home or car, the creditor may also be able to put a lien on their property. This means that if your co-signer tries to sell the property, they will not be able to get full value for it until the debt is paid. If your co-signers are struggling to pay off the debt, they may be able to file for bankruptcy themselves. However, this is dependent on the type of debt they co-signed for and their income. If your co-signers are struggling to make payments on the debt, they should talk to a Maryland bankruptcy attorney. An attorney can help them understand their options and determine if filing for bankruptcy is in their best interest.

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

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