Sister considering bankruptcy , need answer please

[lisars]

What is the name of your state? PA
My sister has told me she is considering filing bankruptcy. Her concern is that she took out an unsecured debt consolidation loan (20K+)a few years ago that our Mother had to co-sign for. She doesn't want Mom to find out but I'm thinking that that's not going to be possible considering her name is on the loan also. Is it possible to do it without Mom finding out, and what ramifications would this have on our Mom's credit if she goes through with it? Or would she have to not include this debt in filing?

 

[kopes]

Others can correct me if I'm wrong, but she has to include ALL debts in her filing. Since Mom is the co-signer, they can then go after Mom for the debt. I don't think she can do this and not have Mom find out.

 

[bigun]

I'd agre with Kopes. They'll flat go after the cosigner if she defaults.

 

[lisars]

Sorry, I guess I phrased the last question incorrectly. What I should have asked is could she choose to reaffirm this debt?(And by doing that not have my Mother have to find out?) It would be worth it to have to pay this back than have to hear again from Mom about her infinite screw ups. Especially since she's pregnant with her first baby and that's got her hormonal enough. And my Dad is now retired and there's NO WAY they could ever pay another bill of this size. Of course my advice goes in one ear and out the other but if I can show her opinions not my own... well not everyone's as uninformed as I am in her opinion, I guess.

Thanks

 

[bigun]

She should be able to reaffirm the debt. It'll likely show on your mothers reports as, "included in the bk of another".
For darn sure, she does not need to let it default even after she files.

 

[icelyn]

sister considering bankruptcy

Arizona - I had a bankruptcy in Colorado. One of my unsecured creditors - my mother co-signed. I requested that they remove her name from the account (this was prior to my filing). I was told that it had been done. I found out from my mom last year (my bankruptcy was 11 years ago) that the creditor appears as a "charge off" on her report. Prior to her telling me that; I was unaware of her credit report being affected, but the creditor did not go after her for repayment of the loan. The best advice: Have her consult with a bankruptcy attorney to find out how this will affect your mother. Having experienced it first hand; I don't believe she will be able to hide this one from mom.

 

[rich221976]

When I filed bankruptcy back in Oct 98, The court sent the notice of the 341 meeting to my mom as well since she was a co-signer for a truck that we had in both of our names.

Rich

 

[lisars]

Thanks for the advice, everyone. I'll pass it on along to her, which is pretty much what I've tried to tell her already.

Thankfully, for her sake, she's kept this account current due to the fact she's afraid Mom would be getting collection calls too. So continuing to make the payment should be easy enough. The last thing she wants is to have my parents have to pay for her mistakes. Sigh... little sisters grow up so fast.... And to think it only took 32 years.

Thanks again.