What happens if you file bankruptcy and have a cosigner?
What happens if you file bankruptcy and have a cosigner?
After you complete the bankruptcy process in California, your remaining unsecured debts are discharged. You are no longer legally obligated to repay them. That applies to debts for which you have a cosigner or have a guarantor. However, your discharge doesn’t extend to your cosigner or guarantor.
Can one person in a marriage declare bankruptcy?
Married couples have the freedom to file for bankruptcy together or individually. Couples typically file together when they have joint debts, but spouses can file by themselves if they choose to. If both spouses want to file for bankruptcy, it is always better to file jointly.
What happens if a co signer files Chapter 7?
If a co-signer files Chapter 7 bankruptcy, that person’s obligation to pay the debt is wiped out (unless, of course, that person “reaffirms” or re-obligates himself to pay the debt). The child is not paying the debt, surrenders the car, and then files chapter 7.
Can a husband declared bankruptcy and not the wife?
If a husband files bankruptcy without his wife, only the husband’s debts are discharged. If the debts are held jointly, the non-filing wife will still owe even after one spouse has filed bankruptcy. The bankruptcy filing will appear on the husband’s credit report, but should not appear on the wife’s.
Should I file bankruptcy before or after divorce?
When Does It Make Sense to File for Bankruptcy Before Divorce? A main advantage to filing bankruptcy before divorce is the potential for cancelling joint marital debts that would otherwise have to be divided up as part of divorce proceedings, and then tackled separately in each spouse’s bankruptcy.
Can I keep my house and car if I file bankruptcy?
If I file for bankruptcy, can I keep my property? If you file for Chapter 13 bankruptcy, the answer is yes. In exchange, you may keep your property (including your car and home), assuming you keep up with payments on any loans secured by the property — and keep making your repayment plan payments.
What do I lose if I file bankruptcy?
You won’t lose all of your property when you file for bankruptcy. Bankruptcy law allows you to “exempt,” or take out of the bankruptcy estate, the things you need to maintain a home and job, such as household furnishings, clothing, and an inexpensive car.
Will I lose my car and house in Chapter 7?
You Must List All Debts and Assets When You File Bankruptcy. By applying bankruptcy exemption laws to their lists of assets, most people filing Chapter 7 bankruptcy are able to keep their houses and cars if: Their budgets enable them to keep up with a mortgage and car loan payments.
Can creditors come after spouse?
“In California, once creditors receive a judgment, they can collect against either spouse because we’re a community property state,” says John G. Stein, an attorney in Elk Grove, Calif. Creditors can take money (known as a garnishment) from bank accounts.
Can my husband refuse to sell your house?
You cannot force a sale, but you can try to come to an agreement with them, by either buying them out or selling them your part of the property. If you’re currently dealing with a divorce, dealing with your shared belongings can become hard work very quickly.
