Legal Question in Bankruptcy in Pennsylvania

debts when primary or cosigner files Chapter 13

I am refinancing my house. A credit check turned up a loan I cosigned for at least 6 years ago, in Chapter 13 status (Account involved in Chapter 13 Debt Adj Charge). I did not file bankruptcy, but do not know if the other person did. I can not contact this other person and have no idea where they may be. The mortgage company wants me to explain why I filed bankruptcy, which I havent, and wants me to pay off this loan before they approve my new mortgage. I was never notified of this bankruptcy filing and have no idea what to do. Am I required to pay off this debt? Am I protected from them collecting it from me? Can the mortgage company make my repayment of this debt a condition of getting my loan?


Asked on 4/03/03, 7:48 pm

1 Answer from Attorneys
Jules D'Alessandro D'Alessandro & Wright

Re: debts when primary or cosigner files Chapter 13

As a cosigner on the loan you are, unfortunately, jointly and severally responsible for the debt. This means the creditor can collect any portion or all of the debt from you if it has been less than ten years from the date the loan was defaulted. However the good news is that if the debt was put through a chapter 13 bankruptcy by the other person then a portion of the debt, usually around 40-45% would have been paid through the chapter 13 repayment plan. We can find out if the debt was included in a bankruptcy, and what portion if any has already been paid. To do this we will need the other person's name and place of filing the bankruptcy. In the event that you are responsible for this debt and it has been less than ten years we can work out a reduced payment for you. Please feel free to contact our office.

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Answered on 4/04/03, 9:45 am


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