Home » Forums » Massachusetts Law » MA Bankruptcy Law Questions and Answers

Guarantor or co-signer in bankruptcy

Submitted by Jonathan on Wed, 08/31/2011 - 18:17
Posted in

My mother signed a loan for me as either a co-signer or guarantor, I can't remember which one. If I file bankruptcy now and get a discharge will she also be able to avoid paying the loan back or will she still get people calling her to try to collect the debt. The loan was only for about $3000 dollars but that is a lot for her. She doesn't want to file bankruptcy either. Thank you.

‹ Will I lose jewelry if I file chapter 7 bankruptcy? Is a denial of discharge different than a debt being non-dischargeable? ›

Guarantor liability

Submitted by The Editor on Thu, 09/01/2011 - 07:46.

You should start by talking to a bankruptcy attorney and having her look over all of your debts and your financial situation to see if you need to file bankruptcy and, if so, whether you should file chapter 7 or chapter 13.  As a general rule, if a debtor files for chapter 7 bankruptcy and attempts to discharge a debt that was co-signed or guaranteed by another person, his creditors may still attempt to collect the amount of the debt from the co-signer or guarantor.  This is true even if the debt is discharged for the debtor.   On the other hand, in certain situations, when a debtor files for chapter 13 protection and abides by the chapter 13 payment agreement, your co-signer or guarantor will be protected from liability for the payment of the debt.  This rule applies to consumer debts that were not incurred "in the ordinary course of business.  Please talk to a bankruptcy attorney.  Good luck.

 

Talk to a Lawyer Today
Find a Bankruptcy Attorney in your County
Most offer FREE Consultations