Saturday, 1 September 2018

A Look At How Filing For Bankruptcy Santa Cruz Can Affect Cosigned Loans

By Dennis Robinson


Money issues hardly happen overnight. Unfortunately, your debts could catch up with you making it imperative for you to seek financial relief by filing for bankruptcy. Ideally, choosing to be declared bankrupt should come as a last resort, perhaps after all other attempts to deal with your debts have proved futile. If you have decided to consider bankruptcy Santa Cruz has a reliable number of top rated attorneys who could provide the much needed guidance.

The quest to being declared bankrupt will be filled with all sorts of challenges. Things are bound to get even more complicated if you have cosigned loans with relatives, friends or business partners. If you are in such a situation, it would be in your best interests to seek the guidance of a competent attorney. A reliable expert would ensure that matters do not go downstream for you and your cosigner.

It remains crucial to have a good understanding of how filing for bankruptcy can impact co-signed debts. For you to get it right, you first need to know who is considered as a cosigner. Well, in case you want to get a loan, but the lender decides that you do not qualify based on your financial situation, you may be requested to have someone with an established credit history to cosign for you. This third partner will be known as the cosigner.

Any time the dotted line is signed; this turns a specific document into a contract that is legally binding. In short, your cosigner who enabled you to secure a specific debt will be agreeing to bear the financial responsibility over a loan should you dodge it or fail to make payments as agreed. If this happens, the cosigner in question can face collection actions. If you file a bankruptcy petition, this will not stop a lender from pursuing your loan cosigner.

Once you file a bankruptcy petition, it shall be unlawful for creditors to nag or even contact you directly. However, nothing legally stops them from going after your debt cosigner. He or she may even face collection actions, especially if you seek financial relief under chapter 7. Keep in mind that this chapter frees an individual from any responsibility of paying particular debts.

Fortunately, a seasoned attorney could be of great help. First, he or she would take a deep look into your financial situation and the sorts of debts you have. From this point, the expert will inform you about the several options you can consider when struggling with cosigned loans.

In the majorities of cases, it would make sense to file a petition under chapter 13. With this, you can get your dues settled over a reasonable period of time. With this, your cosigner will not have to be pursued by your lender. This could save you from putting a strain on a relationship that means something to you.

Bankruptcy cases differ in numerous minor aspects. If you have specific challenges that could affect the outcome of your matter, you should not underestimate the need to work with a seasoned lawyer. Make sure that you find a specialist that you can trust with your case and best interests.




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