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

If you file for bankruptcy in Massachusetts, your co-signers may be impacted. This is because co-signers are responsible for paying off any debt that you are unable to pay. If the debt is discharged as a result of your bankruptcy, it is likely that your co-signers will be held responsible for the debt. Additionally, if your co-signers have any property that is attached to the loan you are filing for bankruptcy on, they may be forced to sell the property in order to pay off the debt. This is especially true if the debt is for a secured loan, such as a car loan or home loan. In some cases, it may be possible to protect your co-signers from being held liable for any debt that is discharged in your bankruptcy filing. This can be done by filing for Chapter 13 bankruptcy and including the co-signers in the repayment plan. In this scenario, the co-signers will not be held responsible for any remaining debt after the repayment plan is completed. Ultimately, it is important to speak with a bankruptcy attorney before filing for bankruptcy. They can provide you with specific information on how your co-signers may be impacted by your bankruptcy filing.

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

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