What Are the Consequences to My Co-Signers?

More often than not, individuals who find themselves facing financial difficulty turn to close friends or family members to co-sign for a loan. This is due to the fact that late or missed payments have hurt an individual's credit rating to the point of not being able to qualify for a loan on his or her own. When this debt continues to mount, a bankruptcy is often the best solution. Contact a knowledgeable Tennessee bankruptcy attorney to learn more about your options.

During a free initial consultation, many individuals ask — What are the consequences to my co-signers? At Kenneth C. Rannick, P.C., we understand that this is a valid concern. It is only right to worry about the future consequences of those who have volunteered to help you in your time of need. The best thing you can do, is explain your situation in great detail to your lawyer. List all of your debts, any co-signers and any complications that might be an obstacle to your bankruptcy. Depending on your situation and your objectives, we can tailor the case to suit your needs. Every bankruptcy plan is different based on the goals of the client.

"Since 1988 I have filed more than 14,000 bankruptcies for clients in the Chattanooga area and helped them get out of debt. I can help you too — and do it affordably." - Kenneth Rannick

Chattanooga Debt Relief Law Firm

Creditors see a co-signer as a co-debtor. If you are not able to uphold your financial obligation, the creditor will turn to your co-signer and hold him or her responsible for the money you have agreed to pay. Fortunately, there is protection in place for consumer debt that is co-signed. Just as you are protected by the automatic stay, if you elect to do so you can protect your co-debtor on your consumer loan. This is a very routine practice.

The best thing to do in these situations, is be as honest as possible. We often encourage that your co-signers be notified of your decision to file for bankruptcy. They should also be notified of what protections are in place for them. They might immediately worry that your bankruptcy means that they are now responsible for the entirety of the loan. This is not true, but you need to be as forthright and upfront as possible throughout the process.

Contact Our Firm

If you have questions regarding co-signer consequences, contact Kenneth C. Rannick, P.C. Contact our office by calling 423-954-7180 or by simply completing the e-mail form on this website. We offer free consultations and can maintain evening or weekend appointments based on the needs of our clients.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.