I was a co-signer on a vehicle and a mortgage with my ex girlfriend. Since then, she defaulted on the car and the house which now have outstanding balances. She filed bankruptcy and it has been discharged. I live in California, and now they are coming after me for the debt. Is this legal? Hasn't the debt been taken care of since she filed for bankruptcy? Why should it be my problem?
1 Answer from Attorneys
This is the definition and peril of co-signing. The cosigning party is liable in the event of the borrowing party's default. The borrowing party's discharge of the debt does not absolve the cosigner and does not protect a non-spouse of the borrower. Unfortunately, you are obligated on this debt. Depending on the extent of your assets and many other important factors, bankruptcy may be your most effective means of ridding yourself of this debt.
This opinion relates to California law. It is not legal advice and should not be relied upon nor does it create an attorney-client relationship. It does not address all facets and factors and circumstances and does not address the situation of a married borrower.
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