Can I be sued by the person who cosigned for a loan that I f

lizard6303 · Joined: 10 Aug 2008 Posts: 1 1.00 Dollars($)

Can I be sued by the person who cosigned for a loan that I filed Bankruptcy on?

I filed chapter 7 bankruptcy over 2 years ago. I included my home and did not reaffirm the loan. The cosigner was a family member.

Two years later we hear from her with court papers..she is suing us for the difference of what the home sold for. She insisted as her name was on the home that we sell it when I lost my job. There is so much more to this than I am able to type. She has been paid. She will win the judgment as we don't have the money to go to another state and fight it. Will she be able to get an order to garnish my husbands wages. I am on disability. SO that is our main concern. I checked...our state does allow garnishment of wages. I am just wondering how easy that will be for her to get an order to do so. We would not be able to make it with 25% of his pay weekly taken away. Any help would be appreciated.

smckaybiz · Posted: Sun Aug 10, 2008 3:28 pm Post subject:

First let me admit that I am no lawyer, but I'm pretty sure the law should be able to protect here. When someone cosigns for a loan they are stating that they will take responsability for the debt if the primary signer defaults on their obligation. For that family member to now come after you because they don't feel like they should be held to their part of the contract is crazy.

I would maybe first contact the attorney you used to file for bankruptcy to see what he/she has to say about this situation you find yourself in. Do you remember if they said anything to you about it when you filed for bankruptcy?

Someone else may be around shortly to give you some better advice.

Best of luck.

Guest 0.10 Dollars($)

Thank you for your response. I was able to contact my attorney. While he stated she can't win this..even if it takes going back to bankruptcy court to have the judge amend it......I thought you could not add anything on your bankruptcy after 30 days. So this must work different. I will feel better when I get an exact answer.....either she can...or can't. It was a chapter 7 bankruptcy zero assets. It is unknown whether she received notice from the court....but she certainly was aware. Evidently that is an issue. If the cosigner was not aware that you filed.
Thank you again for your time.

sara

Hi lizard,

welcome back.

I agree with Scott here. The law should be able to protect you from such a lawsuit as filed by the cosigner. I mean the cosigner shouldn't file a lawsuit when they should be actually helping you pay off the loan when you were in default. I guess you should consult an attorney asap in order to settle this issue.

Take Care

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