Posted on: 27th Sep, 2008 03:57 pm
Our parents allowed the use of their property as collateral for a mortgage loan now we are having to file bankruptcy what happens to co-signers on loan both parents had to sign to allow use of land and house .
hi teri!
welcome to forums!
filing bankruptcy will definitely affect your co-signers. when your parents co-signed a loan for you, they actually guaranteed payment of the loan. if you missed on payments, it has already harmed your co-signers credit. in case you plan to discharge the loan in a chapter 7 bankruptcy, the co-signer will be responsible for the full amount of the debt.
if you are filing a chapter 13 bankruptcy, your co-signer will be protected as long as you make timely payments under your chapter 13 plan.
feel free to ask if you have further queries.
sussane
welcome to forums!
filing bankruptcy will definitely affect your co-signers. when your parents co-signed a loan for you, they actually guaranteed payment of the loan. if you missed on payments, it has already harmed your co-signers credit. in case you plan to discharge the loan in a chapter 7 bankruptcy, the co-signer will be responsible for the full amount of the debt.
if you are filing a chapter 13 bankruptcy, your co-signer will be protected as long as you make timely payments under your chapter 13 plan.
feel free to ask if you have further queries.
sussane
Hi teri!
If your parents are co-signers, then if you file a bankruptcy, then it will affect your parents. The lenders will ask the cosigners to pay the mortgage. Moreover, your late payments have also affected their credit score.
Thanks,
Jerry
If your parents are co-signers, then if you file a bankruptcy, then it will affect your parents. The lenders will ask the cosigners to pay the mortgage. Moreover, your late payments have also affected their credit score.
Thanks,
Jerry
I completely agree with Jerry.
You should try out some other way.
Or just take help of some consultant or the company itself. They will surely guide you properly.
You should try out some other way.
Or just take help of some consultant or the company itself. They will surely guide you properly.
I recently declared bankrupcy on my house and my car. The cause : separation. My ex-boyfriend bought the car and the house, but i cosigned for both of them. What will happen to him? Will he lose the car and the house?
If he continues to make payment then that shoudl not affect him
Also check this out
http://www.mortgagefit.com/bankruptcy/chapter13-cosigner-credit.html
Also check this out
http://www.mortgagefit.com/bankruptcy/chapter13-cosigner-credit.html
The thing is that he can't afford it on his own
juju,
since you are coowner of loan, it will affect your credit score as well. since he can not afford both car & home, he will not be able to refinance mortgage in his name.
you need to discuss it with him & find a sloution.
since you are coowner of loan, it will affect your credit score as well. since he can not afford both car & home, he will not be able to refinance mortgage in his name.
you need to discuss it with him & find a sloution.
discussion will surely solve the problem, instead of blamng each other.
Thats correct
At this point you need set your difeernces aside and come to and agreement and make it legal and both of you commit on stickign to the agreement
At this point you need set your difeernces aside and come to and agreement and make it legal and both of you commit on stickign to the agreement
I have a very very large hospital bill. If I declare a chpt 7 bankruptcy and my mom is a cosigner on my mortgage, can she still keep the house if she continues to make payments on it? Can I be released from the debt on the house and all of my hospital bills?
welcome tegreen,
you can declare chapter 7 bankruptcy and get rid of the large hospital bills as you get a discharge from it. however, you need to include the property as one of your assets while you file bankruptcy. if your mother makes the mortgage payments on time, then she will be able to save the property. if you include the debt in your bankruptcy filing, then you will be able to get rid of those debts when your bankruptcy is discharged.
you can declare chapter 7 bankruptcy and get rid of the large hospital bills as you get a discharge from it. however, you need to include the property as one of your assets while you file bankruptcy. if your mother makes the mortgage payments on time, then she will be able to save the property. if you include the debt in your bankruptcy filing, then you will be able to get rid of those debts when your bankruptcy is discharged.