If my parents co-signed for my mortgage, how will they be affected if I now file for bankruptcy?
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If my parents co-signed for my mortgage, how will they be affected if I now file for bankruptcy?
I own a house that my parents co-signed the loan on. I cannot file for bankruptcy if it affects my parents in anyway. My parents are trying to refinance their house and can’t because they co-signed for my loan and have too much debt now. I feel guilty already so I need to know if my parents will suffer in anyway possible, that could stop them from getting that loan? From anything to a credit score ding, a red flag on their credit report, an application for a loan, etc? If something does happen but can be fixed by a simple phone call, then that information would be helpful too.
Asked on January 7, 2011 under Bankruptcy Law, California
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
There's no way to answer your question without a lot more information. Is there equity in the property? What is the value of all your other assets? What bankruptcy chapter would you be filing? Are the payments current on the property? Do you intend to remain current? I cannot speak as to how it might affect their credit report since that is not a bankruptcy issue, but as long as you exempt any equity in the property and remain current with payments, it shouldn't affect your parents. However, it's not going to lower the amount of debt they have in any event.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 13 years ago | Contributor
There's no way to answer your question without a lot more information. Is there equity in the property? What is the value of all your other assets? What bankruptcy chapter would you be filing? Are the payments current on the property? Do you intend to remain current? I cannot speak as to how it might affect their credit report since that is not a bankruptcy issue, but as long as you exempt any equity in the property and remain current with payments, it shouldn't affect your parents. However, it's not going to lower the amount of debt they have in any event.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
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