What happens if I cosigned on a loan for someone else?
Your bankruptcy filing will not have any effect on the other person. They can still keep their car or home even if you signed as a cosigner – as long as they make the required payments.

What happens to the cosigner of one of my debts?
Unfortunately, bankruptcy does not relieve a cosigner of their duty to repay the debt, but there are still a few ways to protect your cosigner. In a Chapter 7 bankruptcy the only way to protect the cosigner is to repay the debt after the bankruptcy. In Chapter 13 bankruptcy the cosigner will not have to make payments or be negatively affected during your bankruptcy if you reaffirm the debt, timely make the required plan payments, and repay the debt in the bankruptcy plan.

Posted in: Frequently Asked Bankruptcy Questions