I am curious if somone is working on filing bankruptcy and knows it but, uses somone to co sign to buy furniture at a furniture store, and then that party turns around a week or month later to file bankruptcy, can the retail store take you to court for presetting up the plan of buying and then filin under bankruptcy? and can they do anything to the cosigner since they weren't aware of it? Cosigner is now being harrased about what they did....
2007-08-30 09:24:20 · 3 answers · asked by Nico 1 in Politics & Government ➔ Law & Ethics
They can always allege fraud; and the judge can refuse to wipe out the obligation if he feels it was done in bad faith.
2007-08-30 09:32:30 · answer #1 · answered by wizjp 7 · 2⤊ 0⤋
To file bankruptcy, you have to name all the creditors who will be affected. The furniture store will be one of them. They have a right to be at the hearing and state their case. What did you mean by "working on filing"? Did you have an attorney working on it? If so, you can (and probably will) be found guilty of fraud and your claim against them not allowed. The co-signer is responsible for any contract they co-signed for you. Bet the co-signer is real happy with you now.
2007-08-30 10:19:09 · answer #2 · answered by sensible_man 7 · 1⤊ 0⤋
The retail store can go and collect from the co-signer. That's what you're co-signing for-----if the original purchaser doesn't pay, the co-signer says he will.
2007-08-30 09:30:57 · answer #3 · answered by Anonymous · 1⤊ 1⤋