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

If you file for bankruptcy in Wisconsin, your co-signers may be affected in a variety of ways. Generally speaking, if you file for bankruptcy, your co-signers may be liable for any debt or obligation that you have co-signed for. Creditors may be able to sue your co-signers in an effort to collect the debt if you are unable to. This could mean your co-signers may be responsible for repaying the debt in full. Furthermore, if you file for bankruptcy, your co-signers credit could be affected. Your co-signers may see an increase in their debt-to-income ratio, which may make it more difficult for them to get credit. Additionally, the bankruptcy may appear on their credit report, which could affect their ability to borrow money or get other forms of credit. On the other hand, if you file for Chapter 7 bankruptcy, most debts that you have co-signed for are discharged. This means that the creditors cannot collect from your co-signers, as the debt is no longer owed. But if your co-signers voluntarily agree to pay the debt, then they may be responsible for it. Overall, it is important to understand that filing for bankruptcy in Wisconsin can have serious consequences for your co-signers. It is recommended that you speak to an attorney to fully understand how your co-signers will be affected by your decision to file for bankruptcy.

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

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