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

If you file for bankruptcy in Washington, your co-signers may be liable for any debt you don’t pay. This means they could be responsible for paying back the debt that you can’t pay. Depending on the kind of bankruptcy you file, your co-signers may have to pay the full amount of the debt or just a portion of it. If you file a Chapter 7 bankruptcy, the co-signer could be held responsible for the entire debt if the creditor does not receive any payments from you. The creditor may attempt to collect payment from your co-signer if you do not pay the debt as agreed. In a Chapter 13 bankruptcy, the co-signer usually remains liable for any debts that remain unpaid after the bankruptcy is completed. This means your co-signer may have to pay some of the debt if it is not fully paid off by the end of the bankruptcy. It is important to note that even if you do file for bankruptcy, the co-signer may still be held liable if they agreed to be a co-signer on the loan. Therefore, if you are considering taking on a loan with a co-signer, it is important to make sure you understand the risks associated with this decision. This includes the risk that your co-signer may have to pay off the debt if you are unable to.

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

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