If you are a co-signer on a revolving credit account with someone that declares bankruptcy, can the creditor come after you for repayment?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If you are a co-signer on a revolving credit account with someone that declares bankruptcy, can the creditor come after you for repayment?
co-signed with HSBC Suzuki for nephew’s new motorcycle in 2004. The bike was stolen during a period it was uninsured, so he’s still making payments. He made some late payments recently which have totally messed up my perfect credit. I want him to declare bankruptcy because he’s in trouble, but will this show as a bankruptcy/default on my credit too and/or can they come after me if he goes bankrupt?
Asked on May 21, 2009 under Bankruptcy Law, Arizona
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
As a co-signor, you and your credit is on the line. You have the ability as co-signor to make the payments when the guy is in default and it is your responsibility to do so as you promised when you signed the loan agreement. Even if your friend file bkcy, you are still on the hook and can be sued for the full amount. therefore, putting the guy in bkcy does nothing for your. I suggest trying to work out a payoff of the bike and learning from the experience - which is a painful one...
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.