Legal Question in Bankruptcy in Pennsylvania
Bankruptcy and cosigning of a mortgage
I just wanted to know what happens to the cosigner of a mortgage loan when the owner claims Chapter 13 bankruptcy. My parents are old and they didn't know what they were signing and now my brother is claiming bankruptcy. Will they lose their home for co-signing?
Asked on 10/04/99, 1:01 pm
1 Answer from Attorneys
Re: Bankruptcy and cosigning of a mortgage
In a Chapter 13, the debtor is trying to pay his creditors according to a plan. Usually, this procedure is selected to try to "save" the home from foreclosure. If it is successful, the co-signers will have no problems. If the Chpt 13 isn't successful and the property is foreclosed on, the mortgage company may look to co-signer to pay any deficiency on the mortgage. Big problem!
Answered on 10/05/99, 9:51 pm
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