Filing for bankruptcy is a decision that not only impacts your financial situation but also has significant implications for co-signers on your loans.
Understanding how Chapter 7 or Chapter 13 bankruptcy affects co-signers is crucial for individuals contemplating this financial step.
This article provides a comprehensive analysis of the impact of bankruptcy on co-signers, ensuring those considering bankruptcy are well-informed about the consequences for their co-signers.
Before getting into the specifics of how bankruptcy affects co-signers, let’s briefly outline the two main types of personal bankruptcy: Chapter 7 and Chapter 13.
When you file for bankruptcy, the automatic stay immediately stops most creditors from pursuing debt collection against you. However, this protection does not extend fully to your co-signers. Here’s how it affects them:
At Blue Bee Bankruptcy, our lawyers are highly experienced in bankruptcy options. More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.
We strive to help our clients rebuild their lives and take steps toward a better financial future through filing.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
Contact Us Today For Help! You can schedule your free consultation online or call us at (801) 285-0980.