Legal Question in Bankruptcy in Michigan

Co-signers and Bankruptcy

I am considering filing a Chapter 7 Bankruptcy, but I have my Father as a co-signer on one of my larger loans. However, he will be retiring withing the next month. So based on that, can my creditor still come after him considering he will be retired? I was told that creditors cannot touch a retired persons pension or retirement fund, but I want to make sure they can't come after some of his assets. Can you let me know if he will still be effected if he's retired?


Asked on 1/24/08, 3:43 pm

3 Answers from Attorneys
Peter Torrice Canu, Torrice & Zalewski, PLLC

Re: Co-signers and Bankruptcy

He will still be responsible for the debt and they will sue him.

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Answered on 1/24/08, 5:39 pm
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Co-signers and Bankruptcy

The court can come after and garnish certain pensions - it depends on the type of pension. You would definitely want to have someone look into that before you file bk.

And yes, if the creditor obtained a judgment, it could and likely would put a lien on any assets, such as a house or vehicle. The lien could only be removed or discharged if paid off.

You need to discuss all of your questions with Mr. Torrice, who responded to you earlier, as he is very experienced in bankruptcy and can assist you.

Thanks and good luck.

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Answered on 1/24/08, 8:31 pm
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: Co-signers and Bankruptcy

The mere fact that your father is retired will not entirely protect his assets. For instance, a pension check deposited into your father's bank account can be garnished from the bank account because it would then be funds on deposit. All or some of his other assets could still be vunerable to the creditor as well. You do have options, however.

Please call me at 248.679.1552 to discuss further.

Rochelle

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Answered on 1/27/08, 3:18 pm


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