I am a cosigner on a friend’s debt, can the bank come after me?
February 19th, 2010 by Questions
I got a secured loan with a friend/partner who is now claiming personal bankruptcy. The bank is now coming after me for payment. Is there any way for me to get any of this money back from my ex-partnmer.
Posted from: Ontario
One Response to “I am a cosigner on a friend’s debt, can the bank come after me?”
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February 20, 2010 at 10:17 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
The problem is that you really don’t have a debt with your ex-partner. What has happened is that you have contracted with the bank/financial institution that the debt in question would be paid in full, regardless of what happens to the other party. As a result you are fully responsible for the total balance of that debt.
Even if you did have a written agreement with your ex that they would pay you the difference of the loan should they default, as soon as the bankruptcy is filed you loose the right to be able to collect on that debt.