If I File For Bankruptcy Will My Co-Signers Be Liable For My Debt?
Posted on 10 31,2016
There are many factors which must be considered when making the decision to file for bankruptcy. Getting counsel from a skilled bankruptcy lawyer will help you understand the advantages and disadvantages of filing for bankruptcy, as well as assist you in determining if bankruptcy is right for you. If you have family, friends or loved ones who have co-signed loans on your behalf, one of the main issues you need to take into consideration is how you filing for bankruptcy will affect them. Should you opt to file for Chapter 7 bankruptcy all collection efforts against you will stop, however your bankruptcy protection will not extend to your co-signers. They can and will likely be held liable for the full amount of the debt for which they co-signed.
Filing for Chapter 13 does give your co-signers a slightly more protection, while at the same time giving you the opportunity and time necessary to repay your loan on a court-approved restructured settlement plan. There are other ways in which to help protect your co-signers in the event that you need to file for bankruptcy. Our firm will be happy to discuss these options and advise you of your legal rights.
The lawyers at the David McCormick Law Group have seen and addressed all different scenarios that led clients to file for bankruptcy. We understand what our clients are going through and we are determined to do everything possible to help them successfully navigate through the bankruptcy process so they can get back on the road to financial freedom. We are here, not to judge, but to provide you with the compassion, empathy and legal guidance you need. During the past 17 years we have been able to help over 17,000 individuals obtain a fresh financial start. Let us help you do the same. To find out more or to get started on the bankruptcy process, contact a Virginia Beach bankruptcy lawyer at our firm today.