co-signer question

[zoey12345]

Hello. I am so glad that I found this group - just joined today. About a month ago, I retained an attorney to file a Chapter 7. I am scared to death of this whole process to come.

Here is my question. I was engaged to someone about 4 years ago who co-signed on a loan for me. I broke off the engagement about 2 years ago and have not talked to him since. I wanted to keep this loan out of the bankrupcty so that I wouldn't have to involve him and wreck his credit also, but my lawyer said that I have to list all my creditors. He also said that I need to list my ex-fiance in the bankruptcy so that he can't come after me.

Last week I received an angry voice mail from my ex because he got notification that I did not make a payment, but I did not reply to him. He is demanded that I make the payment and refinance the loan and get his name off of it. I cannot qualify for a refinance. My lawyer's office contacted him since then, so he knows that I will be filing. Have any of you been in the situation involving a co-signer? I am so nervous about him showing up on my doorstep. Could he legally retaliate in any way? The loan is for $6,000. How is this going to affect his credit? He has excellent credit. I would appreciate some advice and support.

[justbroke]

My lawyer's office contacted him since then, so he knows that I will be filing. Have any of you been in the situation involving a co-signer? I am so nervous about him showing up on my doorstep. Could he legally retaliate in any way? The loan is for $6,000. How is this going to affect his credit? He has excellent credit. I would appreciate some advice and support.

I don't have direct experience, but have some similar co-debtor issues myself. I offer you this opinion.

First, he can't retaliate at all! You're insolvent and will be in Bankruptcy shortly. He has no remedy other than to file a claim. If you're a no-asset Chapter 7... his claim is really moot as he'll get nothing.

He will be responsible for the debt. Your liability as to that debt will be discharged with your Bankruptcy. Was there any collateral on this loan?

The account will show as Included in Bankruptcy (IIB) on his credit report. This will probably affect him, unless he has really great credit.

While the Bankruptcy will protect him from debtors pursuing the claim, they may file for a motion for relief from the automatic stay as to the co-debtor, so that they may pursue him personally for the balance of the loan.

The only way he can personally prevent the ding... is to refinance it now... into his own name.

What Chapter are you filing under 7 or 13?

[zoey12345]

I'm filing a Chapter 7. There is no collateral on the loan.

[justbroke]

I'm filing a Chapter 7. There is no collateral on the loan.

He's pretty much on his own.