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Texas Bankruptcy - Bankruptcy & Co-Signers

If you are considering filing for Bankruptcy, Contact the Texas Bankruptcy Attorneys at The Law Offices Of R.J.Atkinson for a free bankruptcy evaluation. Co-signers often tend to be relatives, friends, and those closest to you, so it’s important to make an informed decision by knowing what the consequences of filing for bankruptcy will have on a co-signer. We can explain the how bankruptcy can affect co-signers at a free initial consultation.

When you are facing financial hardship or overwhelming debt, filing for bankruptcy may be the best option to get back in control of your finances. Whether you file bankruptcy to get rid of debt, reduce debt, or reorganize debt, you should examine all the consequences that bankruptcy will have on you as well as any co-signers of your debts. It’s important to determine whether your co-signer may be compelled to pay your debt if your file for bankruptcy. Obviously, whether a co-signer has to pay or not depends on the type of bankruptcy you file for and the specifics of your bankruptcy plan.

What is a Co-signer?

A co-signer is a person who signs and guarantees that if you don’t pay, they will. In essence, co-signers are a backup. They sign for the debt along with you to back you up and assure a creditor that the obligation will be paid. A co-signer is the person who is the guarantor of the contract. If you don’t pay then the co-signer is obligated to pay. The principal borrower and the co-signer are both equally responsible for the debt they have signed for. Being a co-signer obligates you to pay another person's debt arising out of a contract or promissory note for a vehicle, mortgage, or student loan, if that person defaults and fails to do so.

Co-signers and Bankruptcy

Chapter 7 Bankruptcy: In a Chapter 7 Bankruptcy bankruptcy, only the debtor is protected if the debt is dischargeable, however the co-signer will still be liable to pay the debt. In a Chapter 7 bankruptcy, your creditors will still have the right to collect from the co-signer pay off the outstanding payments. If you are considering Chapter 7 Bankruptcy, remember that the discharge in bankruptcy only extends to the person filing Chapter 7. Any co-signers are still liable for debts discharged in a Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy: If you file for Chapter 13 Bankruptcy, the co-signer is protected under most conditions and will not be pursued during the pendency of the Chapter 13 case. As long as the Chapter 13 Bankruptcy repayment plan is paid pursuant to the pan and the case remains active, the co-signer receives protection. When the Chapter 13 plan is complete, the co-signer may be liable for any outstanding balance not paid in the plan.

Contact the Texas Bankruptcy Attorneys at The Law Offices Of R.J.Atkinson for a free initial consultation. If bankruptcy is an option to deal with your debts, we may be able to help you. If you have questions about Co-signers and Bankruptcy or Debt Relief services outside of bankruptcy Contact Us.

Contact Texas Bankruptcy Attorney R.J.Atkinson: 800-436-9056

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RJA Bankruptcy Attorney offer Affordable Bankruptcy, Debt Relief and Debt Consolidation. Texas Bankruptcy Lawyer offer Low Cost Bankruptcy Attorney Fees in Austin, Dallas, Fort Worth, Plano, San Antonio, & Houston *Principal Office.

Bankruptcy Lawyer / Attorney RJ Atkinson provides Chapter 7, 11, 12, 13, Bankruptcy, Debt Relief & Discount Legal Services
Filing Bankruptcy can sometimes be the fastest way to get out of debt and may be the most affordable way to get a fresh financial start. Chapter 7 Bankruptcy can quickly wipe out your debts, increase your credit score, stop wage garnishments, get rid of credit card debt, eliminate medical bills, stop payday loans, stop bill collectors, erase negative credit reporting, and reestablish new credit after bankruptcy. RJ Atkinson – Bankruptcy Lawyer have payment plans to make filing Chapter 7 and Chapter 13 Bankruptcy affordable which include low cost flat fees for Chapter 7 that may be considered the cheapest bankruptcy attorney fees depending on the costs other bankruptcy lawyer charge. Chapter 13 Bankruptcy can save your home from foreclosure, save your car from repossession, lower monthly payments, reduce interest rates, get rid of late fees, reduce credit card interest, payoff high credit card debt, raise your credit score, stop creditor harassment, get rid of debt, reduce debt, eliminate creditor calls at work, stop collection calls, start over financially, discharge debts and/or be debt free in 3 to 5 years. IRS tax problems, tax levies, wage garnishments, back taxes, payroll taxes, income taxes can often be handled in Chapter 13 bankruptcy. Divorce/Bankruptcy – past due child support arrears, alimony, spousal support, and divorce debt can often be handled in chapter 13 bankruptcy. The Law Offices of RJ Atkinson handles debt consolidation, loan modifications, credit card debt settlement, debt negotiation, lawsuit defense, IRS problems, credit card lawsuits, TROs temporary restraining orders to foreclosure, forbearance agreements to foreclosure, FDCPA Fair Debt Collection Practices Act lawsuits, FCRA Fair Credit Reporting Act lawsuits, credit report disputes, debt collection lawsuits, adversary complaints in bankruptcy, bankruptcies, foreclosure workouts, mortgage short sales, real estate property tax disputes, civil litigation, commercial litigation, tax lawsuits, small business bankruptcy, corporate bankruptcy, business creditor representation, and most every kind of debt related issue or financially based legal problem on a case by case basis.
Pursuant to 11 U.S.C. §528, “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
R.J.Atkinson Texas Bankruptcy Lawyer - Principal Office: 8000 I.H. 10 West, Suite 600, San Antonio, TX 78230-3868. Phone: 800-436-9056