How will it affect the co-signer on my loan if I file bankruptcy?

I lost my job a little over a year ago and have since found myself in a very stressed financial state. I am considering filing bankruptcy because I have a car loan that is nearly half of my current income. I would willingly hand over the vehicle but my father co-signed and his income has also decreased significantly due to illness and he can not afford to cover the payments or pay it off. If I file bankruptcy would my co-signer be expected to pay it off? I do not want to cause him to lose his house or anything. I am a single mother with my only income at the moment being unemployment.

Asked on March 21, 2011 under Bankruptcy Law, Ohio

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you file bankruptcy, creditors will go after the co-signer for payment of the loan.  On the bankruptcy schedules (bankruptcy forms), you will have to list the co-signer regarding that particular debt.


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