The principal signor on a loan filed bankruptcy. Now the creditor is coming after the co-signor. Can they do that?
Yes. The lender can require the co-signor to make payments on a loan once the principal has declared bankruptcy on the credit. This fact makes it extremely important that those considering co-signing for a loan for another be ready, and able, to pay the loan in the event that the principal signor defaults. A co-signer always has to be careful. Quite often, a really slick debtor will wipe out the debt, and also add the co-signer. This can be a really nasty life experience, especially if you cosign on a car note. Always be careful when you cosign. You may really regret it in the future.
Yes. The lender can require the co-signor to make payments on a loan once the principal has declared bankruptcy on the credit. This fact makes it extremely important that those considering co-signing for a loan for another be ready, and able, to pay the loan in the event that the principal signor defaults. Return to index . . .
