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

If you file for bankruptcy in Nebraska, your co-signers will be affected depending on the type of bankruptcy you file. If you file for Chapter 7 bankruptcy, any debt with co-signers is usually discharged. This means the amount of debt is forgiven and the co-signer will no longer be responsible for paying it. However, if you file for Chapter 13 bankruptcy, co-signers are still liable for the debt. In Chapter 13 bankruptcy, the court creates a repayment plan that usually includes making payments to the co-signer. In either type of bankruptcy, the creditors may still pursue the co-signer for payment. This means the lender can take legal action or even sue the co-signer. If the co-signer is sued, they may be responsible for paying the debt in full. However, the co-signer may be able to use bankruptcy in their own name to discharge the debt. When determining which type of bankruptcy to file, it is important to understand the impact it may have on your co-signers. You should consult an attorney to ensure that the process is done correctly and your rights are protected.

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

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