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Co-signer on Bank Loan

Hello,

In June 2009, it will be 7 years since I graduated from university, at which time I plan on filing for bankruptcy. The only concern that I have is a student line of credit that I have from a bank that my father co-signed for me. Is there a way to have my father`s name removed from this loan before I claim bankruptcy? What steps would I need to take? And if his name must remain on the loan as co-signer, what action will be taken against him when I file for bankruptcy? Will it affect his credit rating? I`m really just wondering what options I have here. Thanks!

Posted from: Ontario
I`m really just wondering what options I have here. Thanks!

Posted from: Ontario

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One Response to “Co-signer on Bank Loan”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

The only way to have your fathers name removed from a co-signed line of credit is to ask the bank. Now practically the bank will very rarely even consider such a request, but there is nothing to prevent you from asking. Now assuming his name is still on the loan and you file bankruptcy, he will remain fully responsible for that loan and will need to arrange to make payments on that loan. If he fails to do this there will definitely be an impact on his credit, but as long as he keeps current with the payments there won’t.