If my parents co-signed for my mortgage, how will they be affected if I now file for bankruptcy?

Get Legal Help Today

 Secured with SHA-256 Encryption

If my parents co-signed for my mortgage, how will they be affected if I now file for bankruptcy?

I own a house that  my parents co-signed the loan on. I cannot file for bankruptcy if it affects my parents in anyway. My parents are trying to refinance their house and can’t because they co-signed for my loan and have too much debt now. I feel guilty already so I need to know if my parents will suffer in anyway possible, that could stop them from getting that loan? From anything to a credit score ding, a red flag on their credit report, an application for a loan, etc? If something does happen but can be fixed by a simple phone call, then that information would be helpful too.

Asked on January 7, 2011 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

There's no way to answer your question without a lot more information.  Is there equity in the property?  What is the value of all your other assets?  What bankruptcy chapter would you be filing?  Are the payments current on the property?  Do you intend to remain current?   I cannot speak as to how it might affect their credit report since that is not a bankruptcy issue, but as long as you exempt any equity in the property and remain current with payments, it shouldn't affect your parents.  However, it's not going to lower the amount of debt they have in any event.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

There's no way to answer your question without a lot more information.  Is there equity in the property?  What is the value of all your other assets?  What bankruptcy chapter would you be filing?  Are the payments current on the property?  Do you intend to remain current?   I cannot speak as to how it might affect their credit report since that is not a bankruptcy issue, but as long as you exempt any equity in the property and remain current with payments, it shouldn't affect your parents.  However, it's not going to lower the amount of debt they have in any event.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/


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