Does Bankruptcy Affect a Co-Signer?
Personal bankruptcy is one method of debt relief sought by people who cannot pay their bills and need a court-ordered solution to get free of their debt burden. Under Chapter 7 of the bankruptcy law, which is the most drastic form of personal bankruptcy, your assets are liquidated. Under Chapter 13, the court imposes a three-to-five year repayment plan. Under both types of bankruptcy cases, a third party can be affected, in this case anyone who co-signs your personal loans.
