Several Questions

[tebtengri]

A person receiving 100% VA disability, SSDI and is retired Army(no pay received from Army) is, now due to HAVEN Act, 100% exempt as I understand it. The person owes $20000 on a car worth $12000, which is over 910 days. They are 3-4 months behind on car payments.

The person has smaller, miscellaneous credits and bill collections and a $3000 line of credit and $10000 credit card that is co-signed by their parents.

Chapter 13 seems like the cheaper option as they can cram down the debt and with chapter 7 and the delinquency, Santander may not want to reaffirm.

How will Ch 7 vs Ch 13 affect the co-signed accounts? The understanding is that in either they basically become the responsibility of the co-signers.

Given that no income will be used but Chapter 13 would be cheaper(and everyone knows they receive income, just it's exempt) can they elect to pay the car, crammed down and just discharge all the unsecured debts?

Is there any bar on the person "helping" the co-signers in either chapter after everything is said and done, well, obviously not the 5 years in 13, but after all the stuff is done that case?

[FireMedic1]

This is a sticky situation that doesnt come up on here often. Ive seen this twice maybe. You need to contact a lawyer and get a consultation to see which path to take. Co-signers will get the bills. They arent the ones filing BK. The creditors will want their money. Thats why co-signing isnt advised for anyone to take on. They always get stuck with the bill. Good Luck!

[tebtengri]

Certainly they'll get the bills but would anything happen to them concerning their credit if the accounts aren't late now, never have been and won't be?

They will head to an attorney as soon as pay day hits and they are back in the United States

[FireMedic1]

It will report a positive as long as payments are made as if it was still yours. It will be like they are the only ones owning cause you'll be DC'ed from that debt.

[FireMedic1]

The discharge does not make the debt disappear, however. The discharge applies to your liability on the debt, not the debt itself. The discharge is personal to the individual who filed bankruptcy. This means that if any other person was liable on the debt, such as a co-borrower or cosigner, that person is still responsible for the entire balance due unless that person filed bankruptcy with you.

https://www.thebankruptcysite.org/resources/bankruptcy/chapter-7/cosigner.htm 

[tebtengri]

Is there anything preventing someone paying the debt for their cosigner post discharge? Probably easier in Ch 7 than 13 but with all income exempt it would likely be possible with either