cosigned loans and bankruptcy

Posted on Tuesday, July 1, 2008

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I may have to file for bankruptcy. The problem is that I have a loan in which my parents co-signed, but I have extensive credit card debts and just can`t find another way. How would filing bankruptcy affect my loan that my parents co-signed?

Filed under: Bankruptcy
 posted by Questions @ 9:13 pm
1 Expert Comment:

 At July 3, 2008 | 11:40 am , Barton Goth GCO Bankruptcy Trustees Said...

If you file for a bankruptcy you will be released from the majority of your unsecured debts, including anything that is cosigned by others. However, your bankruptcy cannot release anyone else from their debts and by signing on your debt your parents are responsible to ensure that contract is paid in full regardless of what happens to you. So if you file bankruptcy they will have to continue to pay on the cosigned loan.

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