How are Co-signers affected by Bankruptcy?

 

If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may still be responsible to pay your debt. You should list the co-signer as a creditor in your bankruptcy petition since they may have a contingent claim against you.

However, a filing debtor may be able to protect the non-filing co-debtor by filing achapter 13. 

Be sure and alert any co-signers regarding to your intention to file bankruptcy in advance of filing.