Legal Question in Bankruptcy in Connecticut
How does bankruptcy affect mother-in-law (loan co-signer)
My mother-in-law (in CT.) co-signed for her daughter's house. Daughter's husband also lived there (and helped pay the monthly payment), but had such bad credit, he's not on the loan. Now daughter and her hubby are divorcing, and daughter is considering bankruptcy, to include the house, and I'm wondering what implications this has for my mother-in-law? Is there a way to get her off the loan and save her credit? Can it be ''quit claimed to me, and negotiations made with the loan company to continue with payments as a rental?
1 Answer from Attorneys
Re: How does bankruptcy affect mother-in-law (loan co-signer)
Thank you for your posting.
As Mr. Tenner noted, most California attorneys are not licensed to advise you on the law in Connecticut, which would apply in this situation. However, typically if your mother in law co-signed for the house, she is liable if the other person defaults. The lender has to agree to take her off (and this is unlikely if there is a bankruptcy) before she can state she is no longer liable for that debt, no matter who the property is quitclaimed to.
I hope that this helps, but if you have other questions, need more information, or feel that you need legal representation, please feel free to email me directly at [email protected]. I�m happy to help in any way that I can.
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