Photo by Bermix Studio on Unsplash. You could pay your medical bills through many forms of borrowing—from putting them on a credit card to a home equity loan. What makes sense? About one-fourth (26%) of American adults (18-64 years old) reported that they or someone in their household had problems paying medical bills during the previous year. This is according … Read More
If you have a co-signed debt, your discharge of that debt may be challenged by either the cosigner or the underlying creditor. Last week we discussed obligations on co-signed debts, both to the joint creditor and to your co-signer. In that discussion we assumed that both those obligations could be discharged (written off) in bankruptcy. But what if the … Read More
If you can’t or won’t pay a co-signed debt, or pay a co-signer, you need to protect yourself from that debt and from your co-signer.
If protecting your co-debtor from having to pay your debt is a high priority, Chapter 13 has a remarkable tool for doing that.
Don’t be afraid to file bankruptcy because of how it would affect a co-signer. Your bankruptcy often actually helps that co-signer.
Through bankruptcy, you may be able to and want to pay a co-signed debt. If not, you need protection from that debt and from your co-signer.
The “co-debtor stay,” available only under Chapter 13, is a creative tool for protecting your co-signer from being forced to pay your debt.
Bankruptcy may give a fresh start not just to you, but also to your relationship with your co-signer.
We’re lingering in the Thanksgiving spirit by appreciating what Chapter 13 has to offer.
The âco-debtorâ stay is a remarkable tool for protecting your co-signer from having to pay your debt.
Sometimes you donât need the extra help of the Chapter 13 âco-debtorâ stay to protect your co-signer from your debt problems.
Chapter 7 doesn’t stop a co-signed creditor from chasing your co-signer. Chapter 13 does. Now and forever.
Chapter 7 does not have the fancy “co-debtor stay” of Chapter 13. But in the right circumstances it can still shield your co-signer better.
Be very cautious about filing without your spouse if the main reason for doing so is that you believe only you are liable on the debts.
If you can’t protect your co-signer through Chapter 7, Chapter 13 provides a strong and creative solution.
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