Legal Question in Bankruptcy in Illinois

bankruptcy filing

I cosigned for a mtg loan for my niece. If she declares bankruptcy how does that affect me?

Asked on 3/20/09, 7:57 am

2 Answers from Attorneys

Adam S. Tracy Securities Compliance Group Ltd

Re: bankruptcy filing

You can be held liable for the loan. Let me know if you have any further questions. A loan modification, short sale or deed in lieu may be able to help you - depending in part of what she does in the bankruptcy. [email protected]

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Answered on 3/21/09, 2:42 pm
Robert D. Rotman Rotman & Elovitz, Ltd.

Re: bankruptcy filing

In a chapter 7, It will depend if she reaffirms the debt or if she surrenders the home. If she reaffirms the debt and keeps current with her payments, the bankruptcy will not effect you. You will remain liable in the event she defaults after the bankruptcy. If she surrenders the home, the home will go into foreclosure and you may be held responsible for any deficiency after a sale. In a chapter 13, it should have not effect you as long as she is current with the plan. Any questions, please call

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Answered on 3/20/09, 5:51 pm

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