Protect Cosigners

Posted by & filed under Chapter 13 Debt Relief.

San Diego Bankruptcy Lawyers

Many prospective Chapter 13 clients in San Diego are concerned about the effect the Chapter 13 bankruptcy debt relief plan will have on a cosigner or an unsecured debt.  When you file Chapter 13 with experienced bankruptcy lawyers, you can lessen the effect of any action against the consigner.

When you file a Chapter 13 debt relief plan with bankruptcy lawyers, here are your options:

1. The San Diego debtor can just relinquish the property to the lender or creditor.  For example, you purchased a car with your mother as a cosigner, you can simply return the vehicle to the creditor during the Chapter 13.  But, if the creditor is not able to get what he or she is owed by selling the vehicle, they may go after the cosigner for whatever is leftover.  If this is what you choose to do, make sure your bankruptcy lawyers in San Diego give you all your options.

2. When you submit your Chapter 13 plan to the bankruptcy trustee, you can make sure your plan calls for full repayment to that particular creditor so that they will not go after the cosigner.  The Chapter 13 bankruptcy trustee must approve this request; however, it is an option.

3. Request that your bankruptcy lawyers ask the court to modify the terms of the loan agreement in Chapter 13.  This may allow you to only have to pay a certain portion of the loan or just the principal. Once you do this, the creditor can still seek contribution from the cosigner.

Before filing for Chapter 13 bankruptcy, we strongly suggest that you discuss all options with your bankruptcy lawyers in order to minimize the effect on the cosigner.

Creditors will be very aggressive in trying to collect any outstanding debt owed.  You need an aggressive bankruptcy lawyer to fight back.  For over 35 years, Thompson | Wedeking has helped thousands of individuals in San Diego, Southern California and California get the fresh start and debt relief they deserve.   Call our office today at 619.615.0767 for more information.

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