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    bfunone's Avatar
    bfunone Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 8, 2008, 11:59 PM
    Can a co signed loan be left out?
    I have a co signed loan and want to leave it out of my bankruptcy and continue to pay for it myself. Can I do this? What would happen if "they" found out? I don't want this going to the person that cosigned the loan for me. Debts and bills have gotten out of hand and I don't see any other choice that I have. I live in Ontario, Canada.
    With us having a joint account could "they" go after the person that I have the joint account with?

    Advice would be greatly appreciated
    DesElms's Avatar
    DesElms Posts: 35, Reputation: 2
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    #2

    Jul 9, 2008, 12:22 AM
    If you lived in the US, the answer would be: Absolutely not! You must report all debts... all of them. If you don't, it's perjury... a crime punishable by both fine and jail time. Bankruptcy court is FEDERAL court; and the feds take perjury seriously. And, were you in the US, the second part of your question about whether "they" (whomever "they" is) can "go after" the co-signer is a qualified "yes." By "yes," I mean that if one co-signer files bankruptcy in the US, the remaining co-signer who did not file bankruptcy is precisely who the creditor will "go after" to seek payment alternative to the primary debtor who has now filed bankruptcy. Bankruptcy would not protect the co-signer unless said co-signer also filed bankruptcy. That's what a co-signer means. When the primary debtor can't pay, the co-signer must pay instead. That's how it works. In fact, the co-signer, if he/she paid, would then become one of your creditors... someone whom you must notify of your bankruptcy, just like all your other creditors. And he/she would then have to "stand in line" along with all the other creditors to get his/her piece of whatever of your assets are ultimately liquidated to pay-off as much of your debt as can be paid. Your relationship with said co-signer, at that point, would be adversarial... requiring each of you to retain your own counsel. It definitely ain't pretty!

    But, alas, you live in Canada... where the laws may be very different. I suspect that you must report everything there, too; but you really need to speak with a bankruptcy attorney. Another reason to speak with a bankruptcy attorney is that you might find that filing bankruptcy isn't necessarily your best option.
    Iknowalotofstuff's Avatar
    Iknowalotofstuff Posts: 144, Reputation: 1
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    #3

    Jul 25, 2008, 10:44 AM
    Quick answer Question 1: 'NO'.
    Quick answer Question 2: 'Yes"

    You can give preference for one unsecured creditor over another. A cosigner does not make the debt secured. The debt is discharged and that leaves the cosigner responsible. You may wish to give some of your disposable income to the cosigner to deal with the debt.

    A joint account renders all owners of the joint account sigularily and jointly responsible for the entire joint debt. One party goes bankrupt... the other still owes the full amount.

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