Hey everyone, so I’m dealing with this mess from my divorce back in 2013. My ex filed for bankruptcy right after, and one of our creditors decided to slap all the debt onto me since I was a co-signer. It’s $14K, and now it’s showing up on my credit report. This debt was included in his bankruptcy, so how is this even allowed? Another creditor we had (also a joint account) never came after me, so what gives? Is this normal? Any advice would be super helpful!
Ugh, that sounds super frustrating. I’ve heard that creditors can go after the co-signer if the primary files for bankruptcy. Something about joint liability? Did you check the original loan agreement?
@Vesper
Yeah, I guess that makes sense. I haven’t checked the paperwork in a while, but I probably should. Thanks for the tip!
@Vesper
Joint liability means both of you were equally on the hook for the debt, even if he was the primary signer. It sucks, but that’s how it works.
@Vesper
Ah, I see. So basically, they can legally dump it all on me even if he’s off the hook?
I went through something similar. You might want to talk to a lawyer about whether the bank’s actions were proper. Some states have different rules.
Ode said:
I went through something similar. You might want to talk to a lawyer about whether the bank’s actions were proper. Some states have different rules.
Good idea, thanks! Do you think it’s worth the cost of hiring someone for this?
Ode said:
I went through something similar. You might want to talk to a lawyer about whether the bank’s actions were proper. Some states have different rules.
Depends on how much you’re willing to fight for it. If it’s affecting your credit badly, might be worth it.
Wait, how did one creditor go after you but not the other? That seems weird. Did they both have the same terms?
Madden said:
Wait, how did one creditor go after you but not the other? That seems weird. Did they both have the same terms?
Exactly! That’s what’s confusing me too. One didn’t bother with me at all, but this one went all in. No idea why.
Madden said:
Wait, how did one creditor go after you but not the other? That seems weird. Did they both have the same terms?
Maybe the second one decided it wasn’t worth the trouble. Some creditors just write off debts instead of chasing people.
Madden said:
Wait, how did one creditor go after you but not the other? That seems weird. Did they both have the same terms?
That makes sense, but still super unfair for you. Hope you can get some clarity on this.
Unfortunately, with joint accounts, creditors can usually go after whoever they think they’ll get the money from. Bankruptcy clears the debt for the filer, not the co-signer.
Valen said:
Unfortunately, with joint accounts, creditors can usually go after whoever they think they’ll get the money from. Bankruptcy clears the debt for the filer, not the co-signer.
Wow, so I guess I’m stuck with it unless I pay up. Thanks for explaining!
Valen said:
Unfortunately, with joint accounts, creditors can usually go after whoever they think they’ll get the money from. Bankruptcy clears the debt for the filer, not the co-signer.
Yeah, unfortunately. But maybe a lawyer can negotiate something for you if you’re struggling to pay.
Just curious, what does ‘primary signer’ mean? I’ve seen that term but never understood it.
Stevie said:
Just curious, what does ‘primary signer’ mean? I’ve seen that term but never understood it.
Oh, it’s like the main person responsible for the account. The co-signer is kind of like backup, but still liable.
Stevie said:
Just curious, what does ‘primary signer’ mean? I’ve seen that term but never understood it.
Gotcha, thanks for explaining. Seems like a rough deal for the co-signer.