How does bankruptcy affects cosigners?

Question

I am considering filing for bankruptcy, but I have cosigners on equipment I leased for my business. Is there a way to file without involving my cosigners? I would be filing for personal bankruptcy and possibly for my business also. My cosigners are family members, so I don't want to screw them over. Would they be covered under chapter 7 or 13?

Answer 1

Get some more jobs and quit having debts.

Answer 2

You should take a look at the options you can find at: IMMEDIATELOAN.NET-

RE How does bankruptcy affects cosigners?

I am considering filing for bankruptcy, but I have cosigners on equipment I leased for my business. Is there a way to file without involving my cosigners? I would be filing for personal bankruptcy and possibly for my business also. My cosigners are family members, so I don't want to screw them over. Would they be covered under chapter 7 or 13?

Answer 3

A cosigner agreed to pay if you don't. Your bankruptcy does not cover them. The possibility you would not pay is the reason your creditor wanted a cosigner in the first place.

Answer 4

You may find your answers here...

http://www.creditmanagementworld.com/bankruptcy/bankruptcy01.html

They also have a members only area with more detailed information about what you are asking. For $80 it's maybe a good idea to find-out what you can before you spend $200 an hour to sit in front of an attorney - they will be glad to answer your questions...but, the meter will be running the whole time.

Answer 5

If you file bankruptcy, the creditors will go after your cosigners.

I suggest checking the local yellow pages for bankruptcy attorneys. Most all BK attorneys will grant you a short consultation free of charge.

Good luck. If you decide to go that route, you better have plans in place to get your relatives the money they need to pay back those loans when the creditors come a callin :-(

Answer 6

Check with an attorney on that but I believe if you don't pay or cannot pay, those co-signers will either have to fulfill the agreement to pay for that merchandise or they will be filing bankruptcy as well. Think not only twice about bankruptcy but several times and forget about your retired uncle representing you in bankruptcy court. He may work cheaply but you get what you pay for.

Answer 7

With a chapter 7, your cosigners would pay, Chapter 13 is a structered payout so it may be up to the creditors whether they will accept it, not sure.

Answer 8

When you file bankruptcy the debt responsibility then falls to your co-signers. That is specifically why co-signers are used. Talk to your attorney as there may be a way around it. Good luck

Answer 9

Go to a credit counsellor and see how to redo your debt without going into bankruptcy. There is a way of keeping the creditors happy and not hurting your family relationships.

Answer 10

Don,t file bankruptcy your cosigners will have to pay your debt for you talk to your lawyer

Answer 11

That's right, you just dumped you debt on you friends. It's a two for one special it hurts your credit and theirs.

Cosigning goes something like this:
"Hi I'm a professional lender, yes I do this for a living and I can't charge you a high enough rate to make any money because odds are your not going to pay me back. So go lie to your friends and tell them your going to pay me back, which we both know you won't, so I don't get screwed they do!"

Pay cash!