Legal Question in Bankruptcy in Utah

Creditor did not file a claim on a co-signed debt for my Chapter 13 ...
I filed for a Chapter 13 bankruptcy in 2001. My mother was a co-signer on one of my debts. My bankruptcy papers stat that the co-signed debt would be paid back 100% plus interest to protect my mother as I requested. I have paid the monthly declared amount for five years and was released in July of 2006. I have since found out that the company did not file a claim so they only recieved $192.00 dollars of a $2,000.00+ loan. The secured amount was only $150.00. A collection agency is now demanding payment from my mother. This debt was sold to them in 2005. My question is how can payment be demanded. If the original company had filed a claim as requested by the court they would have already been paid 100% plus interest. I feel they had their chance and should not be able to attempt this. What are my mother's legal rights? She has retained a lawyer, but he did not answer this question when she asked. Thanks for any guidance you can give me.

Asked on 11/18/06, 7:12 pm

Alvin Lundgren Alvin R. Lundgren, L.C.

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Re: Creditor did not file a claim on a co-signed debt for my Chapter 13 ...

If your mother did not file bankruptcy, she is still liable on the debt.

Answered on 11/18/06, 9:34 pm

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