Legal Question in Bankruptcy in Virginia

Co-signed on a mortgage loan with family member

I am co-signed on a mortgage loan with a family member, but not the deed to the property. I want to declare personal bankruptcy. How does my bankruptcy affect the other family member on the loan, who is holding deed to the property?


Asked on 4/11/02, 2:29 pm

2 Answers from Attorneys
Randy Masters The Law Office of Randy Masters

Re: Co-signed on a mortgage loan with family member

You did not mention whether or not you want to keep your home. If you want to keep ("reaffirm") your debt with the mortgage company, then it doesn't affect the cosigner at all because you would not be defaulting on the loan (and then, in turn, make the mortgage company go after the cosigner). But if you do want to surrender the home in the bankruptcy, then the cosigner would be liable on the loan after you default on payments and include the debt in your bankruptcy.

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Answered on 4/12/02, 2:00 pm
Tommy Andrews, Jr. Tommy Andrews, Jr., PC

Re: Co-signed on a mortgage loan with family member

If you dont own the property the Chapter 7 Trustee will not be interested in selling the property. If the mortgage payments are kept current, your bankruptcy should not affect the ownership of the house. If you have any further questions, you can call me at (703) 838 9004. Tommy Andrews, Jr., Esquire

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Answered on 4/11/02, 11:00 pm


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