If you are a co-signer on a revolving credit account with someone that declares bankruptcy, can the creditor come after you for repayment?

UPDATED: May 21, 2009

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If you are a co-signer on a revolving credit account with someone that declares bankruptcy, can the creditor come after you for repayment?

co-signed with HSBC Suzuki for nephew’s new motorcycle in 2004. The bike was stolen during a period it was uninsured, so he’s still making payments. He made some late payments recently which have totally messed up my perfect credit. I want him to declare bankruptcy because he’s in trouble, but will this show as a bankruptcy/default on my credit too and/or can they come after me if he goes bankrupt?

Asked on May 21, 2009 under Bankruptcy Law, Arizona


J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

As a co-signor, you and your credit is on the line.  You have the ability as co-signor to make the payments when the guy is in default and it is your responsibility to do so as you promised when you signed the loan agreement.  Even if your friend file bkcy, you are still on the hook and can be sued for the full amount.  therefore, putting the guy in bkcy does nothing for your.  I suggest trying to work out a payoff of the bike and learning from the experience - which is a painful one...

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