What will happen to my Co-Signer if I file for Bankruptcy?

A co-signer is one who has signed his or her name along with the borrower and has agreed to pay the debt of another if the primary borrower is unable to. In many instances, a co-signer will be a family member or close friend. If you are a co-debtor and the borrower will be filing bankruptcy, it is important to find out what the debtor intends to do.

In a Chapter 7 bankruptcy, even if the debtor files for bankruptcy and is discharged from paying that debt, the co-signer will still be responsible for making payments on that debt.

In a Chapter 13 bankruptcy, the co-signer will be protected and will not be responsible for the debt so long as the primary borrower is keeping up with their payments according to the repayment plans terms.