How can I protect any co-signers on my loans if I am considering bankruptcy in Florida?
If you are considering filing for bankruptcy in Florida, you have probably thought not only about how doing so will affect you and your future, but also how it might affect those whose finances are tied up with yours, such as a spouse or a co-signer. For answers to questions that relate specifically to your bankruptcy case, you should speak with an attorney at one of the dedicated Florida bankruptcy law firms.
Whether or not your co-signers are protected depends on what type of bankruptcy you file. A Chapter 7 bankruptcy only protects you and the debtor, but a co-signer will still be held liable for the debt, which means that creditors can still demand payments from your co-signer, even if they cannot go after you.
A Chapter 13 bankruptcy is the only way to protect your co-signers from creditors and collection agencies. A Chapter 13 bankruptcy requires you to structure a repayment plan, and as long as you adhere to the terms of the plan, your co-signers will not be liable for the debts under a few conditions:
- debts of the co-signer are personal debts rather than business debts;
- the co-signer does not receive any benefits from the proceeds of the debt repayment (such as interest); and
- you continue to make your bankruptcy repayment plan payments on time.
If you are considering filing for bankruptcy in Florida, speak with an attorney at one of the hard-working Florida bankruptcy law firms about how to protect your co-signers and plan for your new financial future.
Contacting a Miami, Florida, Bankruptcy Attorney
If your debts have spiraled out of control to the point where you believe your only option is to declare bankruptcy, speak to a professional about your options before jumping into any life-altering financial decisions. At Loan Lawyers, LLC, our consultations are free and we have offices in Broward, Miami-Dade and Palm Beach Counties. Contact use at 1-888-FIGHT-13 to schedule your consultation today.
