Tag Archives: Cosigners

How Can You Protect Co-Signers When Filing for Bankruptcy?

Bankruptcy may be the best solution to for your financial future, but it may hurt the co-signers that were willing to back you in the past. It’s not always easy to convince people to co-sign for you, and it generally shows a great deal of trust, so of course you don’t want your financial freedom to cost your friends and family theirs. Chapter 7- As soon as you file for Chapter 7, you are protected from any liability from creditors and collectors but co-signers are fair game. Collectors will shift all focus from you to your guarantors. To protect co-signers from creditors and collectors, you can do one of two things. Reaffirm your debt- this means that you will continue to be responsible for any debts not covered from your bankruptcy. This isn’t ideal as you would be forfeiting the discharge of debt that makes bankruptcy a good option. Continue…
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