If you’d like to shield the co-signer from all of these range activities, you’ll be able to register section 13 case of bankruptcy, making the assumption that you have got routine earnings and you be considered. Should you submit part 13, there’s a “co-debtor remain” that safeguards your own co-signers.

So long as the co-signed financial obligation are an unsecured debt, and thus long because suggest to pay the debt completely (or cure the late levels) while in the part 13 instance, your co-signer are shielded by bankruptcy proceeding judge “automatic remain” and should not feel also known as, prosecuted, or whatever else for all the co-signed debt, so long as you conform to your own strategy and shell out the program repayments. Continue reading →