View Full Version : Bankruptcy and co-signers tax refund
ki12_
Apr 7, 2011, 04:56 PM
I am currently filing a Chapter 13 bankruptcy and including private student loans in the filing. I have a co-signer on these private loans and I am wondering if the state can take his tax return? They would need to notify him before hand wouldn't they? The carriers of my loans have been notified of the bankruptcy and are in contact with my lawyer.
ScottGem
Apr 7, 2011, 05:53 PM
Yes they can. A judgment will probably be need to be gotten against them. But co signing means they assume responsibility for the debt if the primary defaults.
JudyKayTee
Apr 7, 2011, 05:54 PM
Your lawyer is your best source of knowledge but a Chapter 13 also protects your cosigners. If you cannot reach a plan, cannot get your Chapter 13 approved, yes, the student loans will be collected from your cosigner.
Are there judgments against you for these loans? Judgments against your cosigner?
http://www.bankruptcyhome.com/cosigners.htm
ki12_
Apr 7, 2011, 06:29 PM
No, there are no judgements against me or my co-signer.
ki12_
Apr 7, 2011, 06:32 PM
AS there are no judgments against me or my co-signer, I am going to assume that his tax return is safe. He should have received notification if they were going to take his return. But I will contact my lawyer just to be safe. Thanks for your help.
Fr_Chuck
Apr 7, 2011, 06:39 PM
In a chapter 13 you are working out a payment plan, and they will be required to accept the plan as payment