Shielding Cosigners From Creditor Harassment

When it comes to the minute details involved in bankruptcy, a seasoned and skilled attorney can provide you with vital assistance. The smallest error can lead to significant consequences for others beyond the individual who is filing; cosigners of loans now in bankruptcy court can also be held accountable for unpaid debts, and they must prepare themselves for the worst.

For more information on cosigner protection, contact the Law Office of Kenneth Gallant by telephone at 585-232-7560 to speak with me, an experienced New York bankruptcy lawyer. For your convenience, I have law offices throughout the Rochester, New York, area.

Cosigner Responsibilities And Consequences

Debt problems do not occur overnight. Over time, the debtor falls deeper into financial distress. When a person’s credit score gets smaller over months and years, that individual may need a cosigner to secure a loan. While this helps that person in the short term, it does nothing to resolve the person’s debt management issues.

Financial Concerns May Lead The Debtor To Bankruptcy

While the individual filing Chapter 7 bankruptcy may get the debt relief he or she needs, the cosigner could become the new target of the lender. Lenders will pursue payment from the cosigner just as aggressively, and they may enforce payment on the cosigner without discussions of car repossession, exemption or a reaffirmation agreement.

Chapter 13 bankruptcy protects the cosigner with an automatic stay, which will stop creditors from enforcing payment. If the repayment plan leaves a remainder of the loan, however, the lender can pursue the amount owed from the cosigner. This ensures that the lending institution gets back the same amount without double-dipping from both debtor and cosigner.

Contact An Attorney For Experienced Legal Guidance

Creditors may try to hold you, the cosigner, accountable for someone else’s financial struggles. If you need help dealing with lenders after someone else’s bankruptcy, I can provide it. Email my law firm or contact me by telephone at 585-232-7560 to speak with a knowledgeable New York bankruptcy attorney. I offer free initial consultations and reasonable rates. I will meet with you personally in one of my conveniently located law offices.

My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.