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Monday, 3 September 2018

Understanding How Bankruptcy Santa Cruz Affects Cosigned Loans

By Dennis Robinson


If money problems have caught up with you and you have numerous debts that you are unable to pay, perhaps you should consider filing for bankruptcy. This would give you some financial relief and also save you from the constant nagging from creditors. A successful case would enable you to begin building your financial life afresh. When interested in filing for bankruptcy Santa Cruz could provide you with a decent number of highly regarded attorneys.

Filing a successful petition is usually not easy. Additionally, you could encounter more challenges if you happen to have co-signed loans with a spouse, relative or business partner. When handling such a problem. It will be imperative for you to seek the counsel of a seasoned attorney. The expert could help ensure that your best interests and the interests of your cosigner are protected.

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.

Contracts are legally binding and you will become part of the problem of a cosigner from the instant he or she signs the dotted line to help you secure a loan. In case you miss payments or avoid the debt, your cosigner will bear the financial responsibility and could face collection actions. It is unfortunate that even if you file for bankruptcy, this would not stop your lender for pursuing the 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.

A competent lawyer could lend a hand. The most basic thing that will happen is that the specialist will deeply scrutinize your financial situation. You would then get information about the most viable options to consider in case you have 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.

Irrespective of the complexities revolving around your case, a competent attorney could help you out. Just ensure that you find a lawyer with years of experience up the belt. Such a specialist will ensure that you have a good chance of quickly getting back on your feet financially.




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