In a Chapter 7 case, your cosigner will still be responsible for the debt. In a Chapter 13 case, you can either schedule the joint debt to be paid outside by the cosigner or you can pay the debt through your Chapter 13 plan at the contract rate of interest to protect the cosigner. In a Chapter 13 case, if you do not pay the joint debt in full and at the contract rate of interest, your cosigner will be responsible for any balance left owing at the end of the case. In a Chapter 13 case, the creditors are prohibited from calling or trying to collect from the cosigner unless they are able to obtain permission from the bankruptcy court. In a Chapter 7 case, the creditors may continue to try to collect from the cosigner without obtaining the court’s permission.
This answer does not create an attorney/client relationship and is for informational purposes only. We are a law firm licensed in Georgia. A consultation with a qualified attorney in your area is required to determine specific legal advice as to your situation and applicable law. We are a law firm designated by Congress as a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.