This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Bankruptcy can be a challenging process for individuals facing overwhelming debt, but it's essential to understand how it can impact cosigners, cosigners, and co-borrowers. Next, we'll explore how bankruptcy affects cosigners, the concept of the co-debtor stay, and clarify the credit implications for non-filing co-borrowers.
At Fleysher Law, we are here to advocate for our clients as they build towards a more stable financial future. Learn more about bankruptcy and cosigners below. Then, contact us to schedule a free case consultation.
When one borrower files for bankruptcy, it can have implications for cosigners, cosigners, and co-borrowers who are jointly responsible for the debt. While the bankruptcy filing may discharge the filing borrower's obligation to repay the debt, it does not necessarily release the cosigner or co-borrower from their responsibility to repay the debt.
In certain bankruptcy cases, such as Chapter 13 bankruptcy, the filing borrower may be eligible for a co-debtor stay, which temporarily protects cosigners and co-borrowers from collection actions by creditors. The co-debtor stay prohibits creditors from pursuing the non-filing co-borrower for repayment of the debt during the bankruptcy proceedings.
One important aspect to note is that while bankruptcy filing may impact the filing borrower's credit profile, it typically does not directly affect the credit of the non-filing co-borrower. The non-filing co-borrower's credit history remains separate from the filing borrower's, and the bankruptcy filing does not directly impact their credit score.
Despite the potential protections offered by the co-debtor stay, non-filing co-borrowers may still face challenges in managing joint debts after a bankruptcy filing. It's essential for non-filing co-borrowers to stay informed about the status of bankruptcy proceedings and to communicate with creditors to ensure that their rights are protected.
Working through the issues of bankruptcy and its impact on cosigners and co-borrowers can be overwhelming. If you're a cosigner or co-borrower facing the implications of a borrower's bankruptcy filing, it's crucial to seek guidance from a qualified bankruptcy attorney. An attorney can assess your situation, explain your rights and options, and provide guidance on how to protect your interests during the bankruptcy process.
Bankruptcy can have significant implications for cosigners, cosigners, and co-borrowers, but it's important to understand that their rights and responsibilities may differ from those of the filing borrower. While the co-debtor's stay offers temporary protection for non-filing co-borrowers, it's essential for them to stay informed and seek legal guidance to navigate the process effectively.
If you're a cosigner or co-borrower affected by a borrower's bankruptcy filing, Fleysher Law can help you. Contact our Florida bankruptcy attorney for personalized guidance and support.
Emil Fleysher is a South Florida attorney dedicated to helping individuals overcome financial hardships. As the founder of the Law Office of Emil Fleysher, P.A., he specializes in bankruptcy, debt settlement, foreclosure defense, and mortgage solutions.
A graduate of Nova Southeastern University Shepard Broad Law School (2009, honors), Emil has a strong commitment to consumer rights and has volunteered over 300 hours with Legal Aid of Broward County. His firm takes a personalized, client-focused approach to debt relief, ensuring individuals understand their options and regain financial stability.
For those facing overwhelming debt or foreclosure, Emil offers free consultations to explore the best solutions.
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