Search Site
Menu

Filing Bankruptcy to “Undo” the Mistake of Co-signing for Debt

     Throughout our lives we will be faced with the opportunity to help out family and friends in need of financial assistance.  A common way for people to achieve this is through co-signing on a loan.  When you co-sign with someone else you make yourself equally liable for the debt with the co-borrower.  If everything goes according to plan, the co-borrower will make all due payments on time until the account is paid in full.

     But when the person you were trying to help misses a payment, or worse yet, stops paying on the note, you can expect to start getting harassing phone calls and letters.   If the account is not brought current some time thereafter, the lender could take the next step in the collection process and file a civil lawsuit against you seeking to recover the outstanding balance.  This is a very serious matter because a lawsuit can lead to a judgment that would allow the creditor to garnish your wages from your paycheck or even freeze your bank accounts and remove the funds. 

     While it’s unfortunate anytime we do something that’s meant to be helpful and it comes back to bite us, here you may have a means for putting it behind you. Filing bankruptcy can eliminate your liability on the co-signed loan, thereby “undoing” your good deed gone bad. If you have co-signed on a loan with someone who has stopped making payments, it may be time to consult with a bankruptcy attorney to investigate your options for resolving the situation.

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    I have done business in the past with Jeff Field and Assoc. and highly recommend them to my family, friends and colleagues. I worked closely with Casey and Chris whom made the stressful process so much easier. I was able to rectify my issue in less t...

    Read more

    Hema Juman

  • lawyers
    5.0/5.0

    I chose Jeff Fields and Associates because of the positive reviews I read. My experience with them was very nice. Everyone I had the pleasure of working with was very professional and knowledgeable. Ms. Mai and Chase Butler were very quick too respon...

    Read more

    Client

  • lawyers
    5.0/5.0

    One of the best groups of people I’ve ever worked with. Fantastic company with employees who actually care about your personal experience during an awkward time. I hardly write reviews but wanted to let others know where to go if they happen to eve...

    Read more

    Client

  • lawyers
    5.0/5.0

    Working with Jeff Field & Associates was a pleasure. My attorney and case manager were awesome. They made this journey as smooth as possible and overall just very professional. I will recommend their services to anyone who is seeking help in gettin...

    Read more

    Client

  • google
    5.0/5.0

    This was by far a seem less process. Everyone was extremely helpful and a joy to work with. They answered all of my questions and followed up quickly when needed. Needless to say, I would definitely recommend their services to all of my friends and f...

    Read more

    Jason Barnes

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form