Your Chapter 7 or Chapter 13 bankruptcy filing will not negatively affect the credit reports of any co-signers on your debt, but neither it will discharge their joint liability for the debt.
Click here to read more about how co-signers are affected by bankruptcy on the new Michigan bankruptcy blog of Michigan bankruptcy attorney The Hilla Law Firm, PLLC.
If you are a southeast Michigan resident and are interested in discussing your options for bankruptcy, please feel free to contact me at (866) 674-2317 or firstname.lastname@example.org to schedule a free, initial consultation.
Posted in Bankruptcy Process, Business Debt, Chapter 13, Chapter 7, Co-signers, Debt Listing, Student Loans
Tagged Chapter 13, Chapter 7, co-signers, debt, detroit bankruptcy attorneys, detroit bankruptcy lawyer, detroit bankruptcy lawyers, Michigan, michigan bankruptcy attorney, Michigan bankruptcy attorneys, nondischargeable, southfield bankruptcy attorneys
A reaffirmation agreement is, as I’ve written here before, a separate agreement that you may have the option to sign in a Chapter 7 bankruptcy that, essentially, puts you back on the hook for the “reaffirmed” debt as if you had never filed for bankruptcy at all. A Chapter 7 bankruptcy discharges ALL debts owed (except for those deemed to be non-dischargeable by the US Bankruptcy Code, such as child support arrearages or most tax debts, among others), flat-out, unless a debt is “reaffirmed.”
The reaffirmation agreement is a form document with contractual terms of the loans filled in that is provided by a creditor after filing and which requires the your signature, your attorney’s signature IF there is no “undue hardship” (more on this below), and the creditor’s signature. Once signed, it is provided to the creditor, and it is the creditor’s job to file it with the court. If filed and approved, you will be obliged to pay the debt regardless of the bankruptcy.
In most cases, I do not recommend that my bankruptcy clients here in Michigan sign reaffirmation agreements.
Posted in Chapter 7, Debt Listing, Home Mortgages and Bankruptcy, Michigan, Personal Property in Bankruptcy, Reaffirmation Agreements
Tagged Chapter 7, chapter 7 bankruptcy michigan, Michigan, Michigan bankruptcy attorneys, Michigan bankruptcy lawyer, Reaffirmation Agreements