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.

Related FAQs

Is there anything I can do to rebuild my credit after bankruptcy?
How long will a bankruptcy stay on my credit report?
What are the requirements for filing for bankruptcy under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005?
What is bankruptcy?
What types of debt can be discharged through bankruptcy?
What is the difference between a voluntary and involuntary bankruptcy filing?
How do I know if I qualify for a repayment plan?
How much does it cost to file for bankruptcy?
Will filing for bankruptcy stop a lawsuit?
What is the 341 meeting of creditors?

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

Related FAQs

Related Blog Posts