General Credit Topics

[Dani62384]

If someone is a co-signer on a car loan, and the primary person on the loan defaulted, then filed bankruptcy and included that loan in their bankruptcy, can they still go after the co-signer?

[pizzadude]

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Dani62384 wrote:

If someone is a co-signer on a car loan, and the primary person on the loan defaulted, then filed bankruptcy and included that loan in their bankruptcy, can they still go after the co-signer?

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My guess is that yes, they could still come after the co~signer.   I don't believe that the BK of the primary would negate the debt of another co~signer.

This might get more looks in auto loans or the BK forum, I ask to move it if we don't get more responses.

[Dani62384]

Thanks for trying to questimate an answer anyway....

[pizzadude]

I also googled and found a few answers, most of which sound like this:

"....consider what happens in the case where you have acted as a cosigner on the debt of a friend of family member. As was described above, filing for bankruptcy protection will strip your personal liability from the debt in question. However, it does not effect the personal liability of others attached to that debt."

[Dani62384]

DARN.....thanks for the information!!!

[RobertEG]

+1

Co-signors are legally responsible.  That is why creditors will grant credit based on a cosignee.... an additional party responsible for payment.

[GoingTo800]

Easiest way to look at it is that a BK does not remove the debt, it just makes it so the person who filed does not have to pay it and the creditor cannot try to collect it from them. It doesn't actually "wipe" the debt away, it just removes the filers responsibility, on that note, yes the co-signer is fully responsible