If I co-signed a loan for my daughter and she later files for bankruptcy due to medical bills, am I still responsible for the loan if she includes it in her backruptcy?

Asked on September 24, 2014 under Bankruptcy Law, Alabama

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, you would still be responsible for the loan as a co-signer. Bankruptcy is "personal"; that is, it does not generally negate a debt, but rather only affects the responsibility of the person filing bankruptcy to pay. So if one payer files bankruptcy, that may help her--but then the lenders will look to the co-signers for payment.


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