How Will Bankruptcy Affect Someone Who Cosigned One Of My Debts?
Co-Signers Will Still Owe Your Discharged Debt

How Will Bankruptcy Affect Someone Who Cosigned One Of My Debts?

Co-signers will still owe the full amount of the debt, even if you you get your personal liability discharged in Chapter 7 bankruptcy.
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Updated: 2021-11-24
Can I Get My Student Loans Cancelled or Reduced In Bankruptcy?
 
What Debt Can Be Wiped Out In Bankruptcy?

Chapter 7 offers is no protection of co-debtors. If someone has cosigned a loan for you, they will be held fully responsible for the debt after your personal liability has been discharged. Married couples may need to file together if many of their debts are jointly owned.

Chapter 13 does have a "co-debtor stay" that protects your coeditors during the bankruptcy, and it allows you to structure you Chapter 13 plan classifies co-signed debts specially so they are paid in full.


Legal Consumer - Law. Jurisdictional relevance: The content of this article pertains to all US states and counties.

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    Yes, but it is much more difficult than discharging other types of unsecured debt like credit cards. You have to prove “undue hardship.” But you might get lucky, if you get the right bankruptcy judge. Be sure to consider non-bankruptcy options.

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