What is a co-signer’s liabilityn a loan if the other co-signer files for bankruptcy?
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What is a co-signer’s liabilityn a loan if the other co-signer files for bankruptcy?
My son filed bankruptcy; I co-signed his Sallie Mae loan 5 years ago. While my son included the Sallie Mae loan balance in his bankruptcy, am I now fully responsible for this loan?
Asked on May 4, 2012 under Bankruptcy Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Since you co-signed the loan for your son where he was the primary obligor and he then ended up filing for bankruptcy protection and presumably received a discharge from owing any money on this debt, you as the co-obligor are secondarily liable for the loan.
Meaning, the lender has the option to go after you for payment on the balance of this loan where you are now fully responsible for it.
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