How are Your Co-Signers Affected When You File for Bankruptcy?

If you have co-signed debt, you have to include that debt and give notice to creditors in both #chapter7 and Chapter 13 bankruptcy.
Your debt is "co-signed" if someone else is also responisible to pay your debt. For example, if you bought a car or took out a furniture loan, but your credit was poor at the time, the lender may have required a co-signer such as a parent, sibling or friend.
If you don't take actions to "protect" your co-debtor, your #bankruptcy filing will protect you from collection actions and eventually discharge the debt as to you, but your co-signer will be left to face the consequences of unpaid debt.
As I discuss in this video there are steps you can take to protect your co-debtor in both Chapter 7 and Chapter 13. You can agree to take full responsibility for co-signed debt and pay these accounts (and forego the protection and relief that bankruptcy offers).
Obviously if you protect your co-signers, you will incur increased financial obligations. Further, because your bankruptcy filing stops all creditor activity, it is very likely that your co-debtor's credit will be negatively impacted even if you end up paying the co-signed debt in full.
You would be wise to discuss all of the implications of including co-signed debt in your bankruptcy with your lawyer. Your choices will impact both you and your co-signers financially and in terms of their credit score, and may impact family and personal relationships as well.
If you have co-signed debt but need to file #atlantabankruptcy attorneys Jonathan Ginsberg or Susan Blum can advise you about the legal and financial implications. We're here to help you whenever you are ready
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[@frankag227]

My dad co signed for me on a vehicle. He is considering chapter 7 bankruptcy. Will this affect my credit ? Will they repo my vehicle. Is there a way we can exclude co signed debt and only include credit cards which is the problem my dad is having, high credit card debt.
Thanks

[@anthonywilliams7263]

So if you pay the debt in full at the contracted rate does that include the contracted interest rate?

[@atlantabankruptcy]

Many times, you can lower the interest rate in a Chapter 13. It depends on how new the debt is.

[@jetlo989]

What if you only wanna remove your credit card debt but you have a co sign college loan with a family member,will it show up on there credit report that I filed for bankruptcy?

[@atlantabankruptcy]

You have to include all creditors when you file bankruptcy so your co-signer's credit report will show that a co-debtor did file bankruptcy. It may or may not damage your co-signer's credit - it depends on whether the debt went delinquent.

[@jetlo989]

@@atlantabankruptcy if I does show up on my co signers report how long will it stay there?

[@dogsareme100]

Why do you have to include it? Why not just keep that debt I mean what the trustee going to do go around to EVERYONE you know and asks if you have debt with them? I know you could not include it in a later bankruptcy either, but it would seem that if you did not list the debt it would just stay and noone would know, but you and the co-signer.

[@atlantabankruptcy]

You can't leave creditors off your bankruptcy filing.

[@dogsareme100]

@@atlantabankruptcy How will they know though? I mean do the trustees talk to everyone you know?