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If the principal signor on a loan filed bankruptcy, can the creditor come after the co-signor?

April 26, 2017Bankruptcy co-signor Creditor filed loan Principal signor

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If the principal signor on a loan filed bankruptcy, can the creditor come after the co-signor?

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Yes. The lender can require the co-signor to make payments on a loan once the principal has declared bankruptcy. This fact makes it extremely important that those considering co-signing a loan for another person be ready and able to pay the loan if the principal signor defaults.