Co Borrower Risk?

[bklost]

My wife and I are filing ch 7 in a few months. We have a partner in some rental properties that is not going to file bk. When we file what will happen to her and the loans on the properties? Do the loans get immediately called? If she remains current does that change things? If she is behind does that change things? Thanks for your help

[keepmine]

The risk to the co borrower is pretty simple. She is now 100% responsible for paying the loans.
As long as she's current, no problem. If she is in default, the lender can go after her for the balance.

[bklost]

Thanks for your response. Is it really that simple?

[robertg]

Keepmine is correct. You may find, though, that your investment partners take issue with your name continuing to be on Title.

Robert G
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