Antitrust Law

Asbestos Law

Civil Rights Law

Communications Law

Contract Law

Dispute Resolution

Divorce Law

Education Law

Family Law

Health Law

Immigration Law

Incorporation

Internet Law

Intellectual Property

Landlord Tenant Law

Law Schools

Lawsuit Funding

Lemon Law

Medical Malpractice

Other Law Fields

Personal Injury

Prepaid Legal Services

Structured Settlement

Tax Law

Workers Comp

 

Free Legal Advice

Online Legal Forms

Legal Answers

Legal Definitions

Advertise on LDB


 

 

How is a cosigner affected by bankruptcy?

Navigation:  Home > Legal Questions >How is a cosigner affected by bankruptcy?

 

When you file bankruptcy, all debts are discharged (except for nondischargeable debts, such as student loans or tax liens). Thus, even if there was a cosigner on a debt, you do not have to pay the debt, and the cosigner cannot come after you for the debt, because it is discharged even to the cosigner.

 

However, because a cosigner has joint liability, the creditor can still come after the cosigner for the full amount of the debt. After the debt has been discharged as to the main debtor (the person filing for bankruptcy), the entire obligation falls upon the cosigner to pay the debt. If the cosigner cannot pay it, unfortunately, the cosigners credit will be adversely affected as though the debt were his or her own. However, any money the trustees of a bankruptcy receives will be distributed to the creditors, and cosigners count as creditors.

Sponsored Ads

Find a Lawyer

Sponsored Links

Your Ad Here