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

When filing for Chapter 7 Bankruptcy in Idaho, it is important to understand how this filing will affect debts co-signed by others. Generally, when filing for Chapter 7 Bankruptcy, the debtor is released from responsibility for most debts, including those that have been co-signed. However, it is important to note that the other person who co-signed the debt will still be liable for the debt. In a Chapter 7 Bankruptcy filing, the co-signed debt is generally considered a non-dischargeable debt, meaning that the debtor does not have to pay the debt; however, the co-signer still does. Even though the debtor is released from responsibility for the debt, the creditor can still try to collect from the co-signer. This means that if the creditor is unable to recover from the debtor, they can try to collect from the co-signer. In addition, it is important to note that even though the debt is non-dischargeable, the creditor may still choose to forgive the debt. This means that the creditor can choose to forgive the debt and not pursue the co-signer for repayment. This can be advantageous to the debtor and co-signer in certain circumstances, however, the creditor is under no obligation to do so. Overall, co-signed debts are generally considered non-dischargeable debts, meaning that the debtor is released from responsibility for the debt but the co-signer still is. However, the creditor may choose to forgive the debt and not pursue the co-signer for repayment in certain circumstances. It is important to understand how the filing for Chapter 7 Bankruptcy will affect any co-signed debts before proceeding.

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

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