What happens to my co-signed debts when filing for Chapter 7 Bankruptcy?

When filing for Chapter 7 bankruptcy in Florida, you may be able to eliminate your own personal debt. However, if you have co-signed for another person’s debt, that debt may still need to be paid. When a co-signed debt is discharged in a Chapter 7 bankruptcy, the original creditor may go back to the co-signer for payment of the debt. Any debt that you are a co-signer for, such as a loan or mortgage, cannot be discharged in a Chapter 7 bankruptcy. In this situation, the debt may still be owed by the co-signer. If the person who you are co-signing for is filing for bankruptcy, you may not be able to pursue a lawsuit against them for the unpaid debt. This means the debt may be even more difficult to collect. Depending on your case, you may be able to have the debt discharged in the bankruptcy. If you are considering filing for Chapter 7 bankruptcy in Florida, it is important to talk to a bankruptcy attorney. An attorney will be able to explain the entire process and any potential responsibility for co-signed debts. They can help you understand the consequences of bankruptcy and help you decide what the best course of action is for your particular situation.

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What happens to my co-signed debts when filing for Chapter 7 Bankruptcy?

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