Co-debtors and Bankruptcy Discharges
A person who files for bankruptcy protection may have their debts discharged through the process, freeing them of the responsibility for a particular debt. However, this debt discharge is only available to the person filing for bankruptcy. Other parties attached to the debt may still have an obligation to satisfy an outstanding loan or other debt, even if their co-signer has had the debt discharged.
If you are considering filing for bankruptcy, we can help you to determine whether this process may prove beneficial for you. Contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.
Bankruptcy Proceedings and Co-debtor Responsibilities
When two or more people sign on to a single loan, that loan becomes the responsibility of everyone who signed. If someone has their responsibility to the loan canceled through bankruptcy discharge, the outstanding amount on the debt will simply become the other person or people’s concern.
This leaves co-signers with some of the following debt concerns after a bankruptcy:
- Co-signed rent or leases
- Co-signed home loans
- Co-signed automobile loans
- Co-signed business loans
In some circumstances, being suddenly confronted with this unexpected liability can cause a co-signer to fall into dire financial straits, making it necessary for them to consider filing for bankruptcy as well.
If you are facing overwhelming personal debt and need a way out of this nightmarish financial situation, bankruptcy may be the right way for you to move forward. To learn more about your full range of legal options for debt relief, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675.