Skip to content

Co-Signed Debt in Chapter 7

Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at Mike Agruss Law.
  • Over 20 years of experience in Personal Injury.
  • Over 8000+ consumer rights cases settled.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.

Chapter 7 bankruptcy is generally a faster process than Chapter 13 and can potentially eliminate most or all of your consumer debt. However, it’s important to understand how co-signers for certain debts may be affected by filing, as discharging a debt in Chapter 7 will not necessarily remove liability for a co-signer or non-filing spouse who is also responsible for the debt.You must not omit any co-signed debts when submitting information for bankruptcy, as this may result in a prompt dismissal of your case. Filing for bankruptcy with co-signed debt doesn’t automatically mean your co-signer will be in trouble or liable for your debt provided that you’re able to keep current on payments, such as for auto loans or insurance, and you may also be able to keep this property during bankruptcy. However, if your co-signer is unwilling or unable to make payments during your bankruptcy, he/she may have no choice in the matter and will need to face similar consequences.An experienced bankruptcy attorney can advise you regarding how you and your co-signer can manage certain payments during the Chapter 7 process. If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact a dedicated bankruptcy attorney today for a free consultation.

Submitted Comments

No Comments submitted yet. Sharing your story will help others!

We are listening

We will respond to you at lightning speed. All of your information will be kept confidential.

Form successfully submitted!