If a co-signer files bankruptcy for a debt that they owe, how are the other co-signers affected?
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If a co-signer files bankruptcy for a debt that they owe, how are the other co-signers affected?
My 3 sisters and I each signed a paper from a funeral home stating we would all split the bill of a $8,000 funeral bill of our mothers. So, that means we each were suppose to pay our share of $2,000. One of my sisters filed bankruptcy on the whole $8,000. I was wondering since she did that are my other 2 sisters and I still responsible to pay our part or will the bankruptcy filing bankruptcy cover it? I am asking this because I need to know if it will show on my credit that I haven’t paid it yet if I’m still supposed to.
Asked on May 3, 2011 under Bankruptcy Law, Indiana
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss. I am assuming that your sister filed for Chapter 7 bankruptcy protection, correct? Then is she did she as the debtor is protected from the creditor, here he funeral home. You as the co-signers are still responsible for the debt. That means that the funeral parlor can still come after you for the money. You need to figure out if you are "jointly and severally" liable for the monies owed, meaning that you are all responsible together and alone for the entire debt. Or did you sign only for the third or $2,000? That will make a difference here. I would seek to ask someone in your area on the issue and bring the paperwork from the funeral parlor. Good luck.
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