Legal Question in Bankruptcy in New Hampshire
Co-signers in bankruptcy law
I was wondering if I apply for bankruptcy would my creditors automatically pursue the co-signers of my loans for the loans payment? If so, is there any way the co-signers could not become involved?
2 Answers from Attorneys
Co-signers in bankruptcy
Your co-signers are not involved in your bankruptcy but your creditors would probably turn to them to collect the debts if they are barred from collecting from you.
Co-Signers in Bankruptcy
Your cosigners are not directly involved in your bankruptcy; the automatic stay that prevents creditors from proceeding against you does extend to your co-signers as well; However, the creditor can have it lifted and proceed against the co-signers for the debt. There's no way for the co-signer to get out of the debt under these circumstances. That's the risk one takes when co-signing on a debt.