Legal Question in Credit and Debt Law in Massachusetts

co-signer obligation

the signer filed bankruptcy 6 months after a car (which i was co-signer on) was repossesed. weather the car was listed on bankruptcy i dont know he wont tell me. 7 years to the month after he filed the bank is now comming after me for $$ for the car. i realize the bank can get the difference (value Vs. auction) but they refuse to provide any documentation to me (i have been asking for it every time they bring me into court) as to the original loan papers, the reposession paper work (iwas never notified of repo) the bill for storage/repo cost, paperwork on what car was sold for (deficiency notice?) 3 questions 1. what are my options/steps with getting out of this debt? 2. why are they not going after him for it now that he is employed and able to pay? 3. if i have to pay how can i recoop my loss by like suing him?


Asked on 10/04/05, 1:09 pm

2 Answers from Attorneys
Raymond P. Bilodeau Law Office of Raymond P. Bilodeau

Re: co-signer obligation

Options: pay it off, perhaps negotiating a lump sum reduced amount; ask the debtor to pay it off, even if it was discharged, which he can do; file your own bankruptcy, c 13 or 7. The bankruptcy rules change on October 17.

They are not going after him because the debt was discharged in bankruptcy, which means they are barred from taking any action on the debt against him. That's what a "fresh start" is all about.

You probably cannot go after him for the debt, although if you did not get notice of the bankruptcy filing, it may mean that you were not listed on the bankruptcy papers as a codebtor and it may not have been discharged as to you, if he intended to keep it from you for some reason. The bankruptcy documents are public records and you can see them at the court or, if the case is closed, at the federal document storage facility in Waltham (for a small fee).

Has the court ordered you to pay, or have you managed to hold the creditor off? You may have a claim against them, at least for added fees and costs and interest, if they did not give you notice of the default in timely fashion and an opportunity to intervene earlier. If the documents are still available on the court's website, I can research the answer to whether you are listed or not. I would have to charge you $25.

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Answered on 10/04/05, 7:53 pm
David Baker Law Office of David Baker

Re: co-signer obligation

If it was a chapter 7 bankruptcy and the signer received a discharge, the bank CANNOT go after the signer. That's what bankruptcy does; it relieves you of the legal obligation to pay a debt and prevents the creditor from coming after you. If the bank isn't going after the signer, the car was probably listed in the bankruptcy. If they sue you for the difference, they MUST give you documentation. You may need to get a lawyer to help you because sometimes they just ignore people who are not lawyers. Call me if you get sued. You would not be able to go after the signer to recoop since the signer's obligation to you probably was also eliminated in the bankruptcy. This question would have to be researched in court records. David Baker 617-367-4260

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Answered on 10/04/05, 7:56 pm


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