You are here:
- Home
- Shopping
- Credit/Debt Management
- Creditors and Bankruptcy
- How a chapter 13 will affect a cosigner
Creditors and Bankruptcy/How a chapter 13 will affect a cosigner
Advertisement
Question
My mom cosigned a loan with my husband, and now we find ourselve having to file chapter 13. How will this affect her credit. I'm very concerned and I don't want her harmed.
Thank You
The account will be shown as included in bankruptcy for all signers. As a result it will impact her credit score.
Also, as a cosigner she is fully responsible for the loan if your husband defaults. Therefore, the company could legally pursue her for the full amount if they'd like to.
Related Articles
- How Does A Foreclosure Or Short Sale Affect Your Credit Score
- Will Cell Phone Payments Affect My Credit Score
- Credit Scores - 5 Things Affect Your Credit Score
- Losing FICO Score Points - How Credit Mistakes Affect Your FICO Score
- Credit Scores - Hospital Care How Credit Scores May Affect Your Hospital Care
Creditors and Bankruptcy
Answers by Expert:
David
Expertise
I can help answer questions on how to raise credit scores. I can educate you on all areas of credit scoring. My specialty is helping people recover from Bankruptcy and low credit scores quickly.
Experience
I own a credit repair company and have helped hundreds of my clients raise their scores to purchase homes, cars and qualify for other loans.
Education/Credentials
My background is in Financial planning.
©2012 About.com, a part of The New York Times Company. All rights reserved.