If a co-signer files bankruptcy for a debt that they owe, how are the other co-signers affected?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a co-signer files bankruptcy for a debt that they owe, how are the other co-signers affected?

My 3 sisters and I each signed a paper from a funeral home stating we would all split the bill of a $8,000 funeral bill of our mothers. So, that means we each were suppose to pay our share of $2,000. One of my sisters filed bankruptcy on the whole $8,000. I was wondering since she did that are my other 2 sisters and I still responsible to pay our part or will the bankruptcy filing bankruptcy cover it? I am asking this because I need to know if it will show on my credit that I haven’t paid it yet if I’m still supposed to.

Asked on May 3, 2011 under Bankruptcy Law, Indiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I am so sorry for your loss. I am assuming that your sister filed for Chapter 7 bankruptcy protection, correct?  Then is she did she as the debtor is protected from the creditor, here he funeral home.  You as the co-signers are still responsible for the debt.  That means that the funeral parlor can still come after you for the money.  You need to figure out if you are "jointly and severally" liable for the monies owed, meaning that you are all responsible together and alone for the entire debt. Or did you sign only for the third or $2,000?  That will make a difference here.  I would seek to ask someone in your area on the issue and bring the paperwork from the funeral parlor.  Good luck. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption