Legal Question in Bankruptcy in Michigan

Codebtor trying to sue

I filed bankruptcy chap 7. Listed the Bank as creditor. I had a codebtor with me on loan. (was not spouse) I listed the person as a codebtor in the petition for bankruptcy. My bankruptcy was granted about a year ago. Was told by the codebtor that he refinanced the loan without me or my signature and added approx. 40 thousand dollars to it. I just got a letter in the mail saying that he is going to sue me for 52 thousand of it. Question 1. If the debt was discharged by my bankruptcy for me, was he still lible as codebtor? 2. Since he refinanced this loan into his own name & I didnt sign it am I responsible for it now. 3. Can he sue me for the 52 thousand since I filed bankruptcy and had the debt wiped out for myself. When I look at the petition I show him listed as a codebtor and then the bank as the creditor. Was he supposed to be listed as a creditor? Since he was not listed as a creditor, just a codebtor, can he come back and sue me? The bank is the person who loaned the money, he signed the loan with me and put his house up as collateral. Im still kind of puzzled how the 40 thousand is now 52 thousand.


Asked on 9/25/05, 12:16 am

1 Answer from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: Codebtor trying to sue

If you paid an attorney to do the bankruptcy for you, you should be directing these questions to that attorney. In my opinion, based on the facts as you have provided, you should not be liable for the refinanced amount if you did not agree to repay it. Your original debt was discharged as to you only most likely which means the co-debtor would still be responsible for paying the debt. I'm not sure if the co-debtor can sue you for repayment of the original debt if he/she was not named as a creditor. Call your bankruptcy attorney. You may be able to amend Sch. F to add the co-debtor as a creditor.

This communication does not establish an attorney-client relationship.

Good luck.

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Answered on 9/28/05, 10:59 am


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