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

If you are filing for Chapter 7 Bankruptcy in Washington, you may be able to discharge your co-signed debts. This means that the debt will be eliminated and you will no longer be responsible for making payments towards it. However, it is important to note that although you will no longer be responsible for the debt, your co-signer will still be liable for repayment of the debt. Therefore, your co-signer may face collection action from creditors in order to satisfy the debt. Another factor to consider is that creditors may be allowed to come after any assets that the co-signer has, in order to recoup any of the money that was owed. Additionally, the co-signer’s credit score may be negatively impacted as a result of the bankruptcy filing. The creditor may still send the co-signer bills for the debt, even though they cannot collect any money. Therefore, it is important to inform the co-signer of the bankruptcy filing in order to avoid any surprises. Ultimately, the co-signer is still responsible for any debt that was co-signed by them. Even if you are able to discharge the debt in a Chapter 7 Bankruptcy, the co-signer is still liable for repayment of the debt. It is important to understand the ramifications of filing for bankruptcy and to discuss them with anyone involved on the loan before filing.

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

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