If You Have Concerns or Questions About How Filing for Chapter 7 Bankruptcy Can Affect a Cosigner Contact the Cassidy Law Firm for a Free Consultation with an Experienced Monmouth County Bankruptcy Attorney
What happens when you file for a Chapter 7 bankruptcy and you have a cosigner on some of your debt? Chapter 7 bankruptcy will only eliminate the debt of the petitioner and not that of a cosigner.
Your cosigner is held liable for your debt if you default on the loan. Whether or not a Cosigner will be harmed when you file for bankruptcy depends on the type of Bankruptcy you choose to file. Although Chapter 7 bankruptcy can alleviate your debt problems, the debt burden will fall upon your cosigner. You may want take steps to protect your cosigner, especially if they are a friend or relative. When a cosigner is involved alternatives to Chapter 7 bankruptcy should be considered.
You can keep creditors off your cosigner’s back by negotiating with your creditors to either settle a debt for less than you owe or come up with a modified payment plan. Another alternative, Chapter 13 bankruptcy, allows you to enter into a payment plan to manage debts over the course of three to five years. In most instances you are not required to give up any property and timely payments will protect your cosigner. If you fail to meet the obligations of your payment plan, then a chapter 13 bankruptcy can negatively affect your cosigner.
If you have questions about the bankruptcy process or about how a bankruptcy an affect a cosigner, contact an experienced Monmouth County bankruptcy attorney at The Cassidy Law Firm. At The Cassidy Law Firm we pride ourselves on giving all of our clients the time and personal attention needed to provide them with the legal services they deserve. We offer free no commitment consultations. Contact us today to speak with an experienced attorney and get your free consultation. We are located in Shrewsbury, New Jersey and we service all of Monmouth County including Long Branch, Eatontown, Red Bank, Middletown, Asbury Park, Colts Neck and all of Ocean and Middlesex Counties.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.