Cosigning For Debt and Bankruptcy helps get you off the hook for the debt once you file your chapter 7. If you or someone you co-sign for is considering bankruptcy, you’re probably wondering what happens to the debt. If you’re the one that co-signed for the debt its okay. If you’re filing a bankruptcy this doesn’t mean that the person you signed for looses their car..
Cosigning Debt in Bankruptcy
Let’s imagine you’re a parent co-signing a car for your child. What happens when you file depends on if you’re listed as an owner on the car title. If the person filing bankruptcy is the owner on the title, then they must list the car in the bankruptcy. Its up to them to either continue making payments or send the car back. However, If the co-signer isn’t the person filing and they’re not on the title, then they technically don’t own the vehicle. In this case the person who you cosigned for can keep the car so long as they keep making their payments.
In summary, if a cosigner is filing bankruptcy, and their name is on the title of a car they cosign for they are also an owner. In this instance they have to list the car as an asset in their bankruptcy case. They’ll also have to continue paying for the vehicle if they intend to keep it.
Read This Article Regarding Garnishments and Bankruptcy
Reaffirming Debt You Cosigned For
If you’re a cosigner on a debt and you’ve listed the debt in bankruptcy its no longer a debt you’re responsible for. In most cases it wouldn’t make sense for you to reaffirm the debt because you don’t have the asset cosigned for. I can imagine a circumstance where the person you signed for is behind on the debt and will loose the asset if you don’t pay. In this case the creditor may make you sign the reaffirmation agreement. If this is the case I’d be very hesitant to sign anything.
Tulsa Ok Bankruptcy Attorney Near You
When you’re having financial problems and cant pay your bills you don’t have to go it alone. Our Tulsa bankruptcy attorneys have helped thousands of people get past their financial problems. If you own a home or car you can file and keep them both. In the event you’re a co-signer on a debt the person you cosigned for wont necessarily loose the car either. Call us today for a free and totally confidential consultation regarding bankruptcy in Oklahoma.