We have a cosigned loan with our daughter. It has been ongoing for a number of years. She is considering declaring bankruptcy, but hoping not to. How will this affect the loan? In other words, will we, as the parents be held responsible? I would certainly hope not. We are semi-retired and are not in a position to have this debt thrown back onto our laps.
Unhappily, that would be the result you could expect. If your daughter is able to extinguish her obligation on the loan in a bankruptcy proceeding, that will not wipe out your obligation. It is unwise to cosign loan obligations without considering the very real possibility that the signature might require that the cosigner cover the obligation.
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Unhappily, that would be the result you could expect. If your daughter is able to extinguish her obligation on the loan in a bankruptcy proceeding, that will not wipe out your obligation. It is unwise to cosign loan obligations without considering the very real possibility that the signature might require that the cosigner cover the obligation.
