Will My Filing Bankruptcy Hurt My Mother, Friend, Etc. Who Co-Signed on a Loan for Me?
People often turn to a close relative or friend when having financial trouble. If a relative or friend has co-signed a loan for you and can no longer afford to pay the debt, bankruptcy generally does not keep the lender from eventually being able to collect from the co-signer. In a Chapter 13 bankruptcy, you may be able to reorganize certain co-signed debt, paying it off over time. In some cases, the lender cannot take action to collect from the co-signer while the bankruptcy is pending. If the loan isn’t paid according to the contract, your co-debtor’s credit will be affected.
Cross Stone Law is a bankruptcy law firm serving individuals and small businesses. Carol Cross Stone is a bankruptcy attorney who helps people and businesses file for bankruptcy. Carol has practiced law for over 35 years. She limits her practice to bankruptcy.
Under federal law, Cross Stone Law is a debt relief agency. We help individuals and business file for bankruptcy relief under the Bankruptcy Code.