0028 - Debt Related Queston: Bankruptcy Question # 0028

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QUESTION #0028:

When I was working full time, I applied for and received a car loan from the bank. My co-signed the loan but I paid the regular monthly payments. Recently I have been laid off at work and I cannot afford to make the payments. If I assign myself into bankruptcy, is the loan discharged?



ANSWER:

Your bankruptcy does not cancel the responsibility of anyone who has guaranteed or co-signed a loan on your behalf. The individual who co-signed your loan for you would be liable to pay the loan in full if you decide to file for bankruptcy.