Legal Question in Bankruptcy in Mississippi

I have a large loan with a bank that is a restaurant debt on which my uncle signed as a co-signer. The restaurant closed but we continued to pay on the loan to keep my uncle from paying. Several family members pitched in to help pay. Now several are out of work and we can't afford the note. If I were to file bankruptcy chapter 13 would the co-signer also be protected?


Asked on 5/11/11, 4:17 pm

2 Answer from Attorneys
Antoinette Wooten The Wooten Legal Consulting, PC

Are you planning on reaffirming the debt for the loan?

I ask because you are filing under Chapter 13 and not 7 or 11. Moreover, the debt is for a loan, and you are filing bankruptcy due to your inability to pay a loan that was for a business.

You can file under 7 and perhaps even 11 due to the business failing.

With regard to your uncle, if he is a co-debtor then the bankruptcy will effect him directly. If your uncle is a co-signer and you default on the loan the default will effect his credit.

Antoinette M. Wooten, Esq.

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Answered on 5/11/11, 5:32 pm


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