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

If you file for bankruptcy in South Carolina, your co-signers may be affected. When someone files for bankruptcy, the court discharges most of their debts. This means that creditors may no longer seek payment from the person who filed for bankruptcy. However, when a loan or debt has a co-signer, the creditor may look to the co-signer for payment. This is because the co-signer agrees to take responsibility for the debt if the primary borrower can’t pay it. This means that the co-signer can still be held responsible for the debt, even if the primary borrower files for bankruptcy. If you file for bankruptcy and you have co-signers on any of your debts, the creditors may attempt to collect the debt from your co-signers. The co-signers may be required to pay the debt in full. If they are unable to do so, they may be held responsible for the remaining balance of the debt. It is important to note that certain types of debt can be discharged in bankruptcy. So if you have co-signers on any dischargeable debt, they will not be held responsible for the debt. It is also important to note that some bankruptcy proceedings may protect a co-signer from debt collection. It is best to talk to a bankruptcy lawyer before filing for bankruptcy to understand the impact it may have on your co-signers.

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

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