What are a co-signer’s responsibilities in bankruptcy in New Jersey?
If you are considering filing bankruptcy and a family member has co-signed a loan with you, it’s important to consider the responsibilities your co-signer may have for the loan. Filing Chapter 7 bankruptcy may discharge your personal obligation for the loan, but the creditor could still go after the co-signer.
At Goldman & Beslow, our attorneys have more than 44 years of bankruptcy law experience. We are fully familiar with co-signers’ responsibilities in bankruptcy in New Jersey. We offer a free initial consultation to answer your questions. We offer services in three convenient locations in East Orange, Jersey City and Paterson.
Is there a way to protect a person who has co-signed a loan?
There are two ways you can file bankruptcy and still protect a person who has co-signed a loan with you:
- Continue to pay the creditor even though the debt has been discharged
- File Chapter 13 bankruptcy and propose to pay 100% of the co-signer’s obligation
You will not be permitted to pay interest to one creditor and not to another. As a result, the creditor may hold the co-signer responsible for interest payments at the end of your payment plan. In our experience, however, this is not likely to happen.
Contact An Essex County Bankruptcy Co-Signer Issues Attorney
For more information about a co-signer’s responsibilities in bankruptcy in New Jersey, call our experienced Essex County bankruptcy lawyers today for a free one-half hour consultation at 973-414-8069. Our lawyers serve Essex, Union, Hudson, Passaic, Bergen, Morris, Middlesex, Sussex and other New Jersey communities.