Expert: Terry Leeders - 6/3/2009

Question
Hello,

We will have to claim bankruptcy in the near future we think, we are looking
to rent in illinois and wondering if we have a co-signer for a lease if the
bankruptcy courts claims  the co-signer's income as household income even
if they do not live in the home. We are doing this for credit purposes. Or,
could the co-signer be sued in any way?

We have one source of income at this time. I was laid off in 2008.

Thank you for your assistance.

Sincererly,

Matt

Answer
Only memebers of the household income is counted towards the means test calculation. So, if the cosigner does not live there, then you do not need to factor in their income.
The cosigner is responsible for any default or broken lease though, and can be sued for the balance owed.