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Eric L. Bolves, Esq. |
CAN CO SIGNERS BE PROTECTED?If you file a Chapter 7 and have co signers on any of the debts, the creditors can continue collection action against the co signer. The only way to prevent this would be for you or your co signer to continue to make the payments.If you file a Chapter 13, you will be making at least partial payments as part of the Chapter 13 reorganization plan. If the debt is a consumer debt, not a business debt and the co signer did not benefit from the proceeds of the loan or debt, the co signer is protected as long as the Chapter 13 is active. The idea of this protection is that the Chapter 13 should be allowed to succeed without your creditors pressuring you by pressuring your co signer. Return To Main MenuOffice Consultation Area
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