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How do I protect my co-signers while filing bankruptcy?

Posted on: 14th Nov, 2005 01:36 pm
I want to protect my co-signers while I file bankruptcy. Can I do that?
hi roger_mary,

the creditor can still proceed against your co-signer if you file chapter 7 bankruptcy. if you file a chapter13 bankruptcy your co-signer can be protected to the extent that the plan proposes to repay the debt.

regards,
blue
Posted on: 14th Nov, 2005 01:46 pm
hi roger_mary,

blue has mentioned correctly that if you file a chapter 7 bankruptcy, then the creditors may still approach your co-signers according to terms of the debt agreement, while if you file chapter 13 bankruptcy, then the co-signers get protected but under certain conditions.

  • it should be a consumer debt.

  • the debt can not be incurred in the ordinary course of business and the co-signer must not benefit from the proceeds of the debt.

  • if the debtor is making required payments under chapter 13 then the creditor can not act to collect from the co-signer.

    so, your creditors cannot collect from your co-signers unless it becomes evident that the chapter 13 will not pay the entire amount.

    hope this information will help you.

    god bless you.

    for mortgagefit,
    samantha
Posted on: 14th Nov, 2005 02:04 pm
How long will the creditors stop calling after bankruptcy is filed?
Posted on: 14th Nov, 2005 02:37 pm
Hi Roger_Mary,

The creditor must stop calling for collection purpose immediately after it becomes aware of a filing for bankruptcy.

After a petition for bankruptcy is filed, the court issues notice to all the creditors listed in your bankruptcy schedules which may take a couple of weeks.

Creditors will also stop calling you if you get them informed that you have filed a bankruptcy petition and give them the case number.

If even after getting information, the creditors continue to force collection tactics then they are liable for court sanctions and attorney fees for this contact.

Hope this information will help you. You may have some more detail on bankruptcy here.

God bless you.

For MortgageFit,
Samantha
Posted on: 14th Nov, 2005 02:49 pm
the car was repossed and sold without my knowledge and now a collection agency is tring to collect from me my daughter whom i cosigned for filed chapter 13 bankruptcy do i have a right to know how musch she paid on the car and how much the bankruptcy paid and how much the car sold for before i pay the stated blance?
Posted on: 05th Dec, 2005 05:45 am
Hi,

Yeah, if you are going to pay the balance then you have the full right to know the related details.

You should ask for all the necessary details to clear up all your confusions.

Joee
Posted on: 05th Dec, 2005 06:31 am
Hi Summonsleara,

Welcome to MortgageFit Forums.

Actually I am still in confusion on how your car was sold without your knowledge. If you don't mind I would like to know more of it from you.

Regarding the balance payments you should have a convincing statement before you decide on payments. It is your hard earned money after all.

Ask your collection agency and consult with your daughter to produce the full payment history. You need to check the statement and confirm from your side as well as other related sources to be assured of the accuracy of the balance figure.

So, don't hesitate to ask for the details. You have full rights to know about it.

Feel free to ask if you have more doubts.

God bless you.

For MortgageFit,
Samantha
Posted on: 05th Dec, 2005 09:03 am
my soon, whose car i co-signed for was repossed. he is in the process of filing bankruptcy. the creditor is treatening to sue me...is that possible?
Posted on: 12th Nov, 2006 12:32 pm
Hi Liz,

Welcome to the forums.

When a creditor provides the finance for a car purchase, he holds certain rights on the vehicle until and unless the purchaser fully pays off the loan. The rights of the creditor are in accordance with the state laws and are mentioned in the signed contract. If the purchaser makes late payments or else if he defaults on the loan, the creditor in some states has the right to seize or repossess the car without going to the court.

In your situation, I believe that the creditor wants you to repay the loan, as you are the cosigner. Perhaps he does not want to get involved into selling the car and wants a full payment from you. Or else the creditor may be willing to sell or as already sold the car but not at the amount he is supposed to get from your son. So, he may be asking for the deficiency in the payments.

The best way to get out of this situation is to contact the creditor and ask him to explain you exactly what he wants from you. This will help to clear all your doubts regarding the creditor's actions.

Thanks,

Caron.
Posted on: 12th Nov, 2006 07:39 pm
Thanks for your response.
Can the creditor "sue" me if I refuse to pay?
Posted on: 13th Nov, 2006 02:15 pm
As a co-signer you are liable for the payments and thus creditor has the right to go to the court over the recovery of his amount.
Posted on: 13th Nov, 2006 02:24 pm
I co-signed for my daughter to get a car and she co-signed for me to get a car. I am filing Chapter 7 but we are not putting the cars in it. If we both re-finance to get her name off mine and my name off hers will that protect her credit and make it better for her?
Posted on: 21st Jan, 2009 01:16 pm
well in chapter 7 bankruptcy, other than the exempted property all other assets are liquidated to pay off the creditors. so i don't think you will be able to refinance. better consult your bankruptcy attorney on this.
Posted on: 21st Jan, 2009 10:36 pm
i recently filed chapter 13 and now my cosigner is saying his credit is bad because of me. i thought that my cosigner would be protected? i am paying my monthly payment to my trustee and am confused as to why this is happening.
Posted on: 11th Feb, 2009 08:36 am
i have a joint cc with my ex husband. i am filing for chapter 7, can he sue me?
Posted on: 23rd Feb, 2009 12:37 pm
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