personal bankruptcy
My husband and I co-signed a loan for my sister a year ago, we recently found out she is having trouble making payments. She is thinking of filing for bankruptcy, what would happen to the loan if she does. Would my husband and I be on the hook for the loan or would it get paid off if she filed bankruptcy?
Posted from: Ontario
If she files for bankruptcy she will no longer be responsbile for the loan in question.
At this point you and your husband would be left on this loan and would be responsbile to ensure that it is paid in full. A bankruptcy cannot absolve you from this debt as it can only impact the responsibility of the persion filing into the bankruptcy.
However, as you have cosigned, you wil