What Happens to My Bankruptcy Co-Signer When I File in Minnesota?

Posted by Wesley Scott on April 21, 2021 at 9:30 AM
Wesley Scott

Two hands with pens sign the same bankruptcy document, posing the question, What happens to my bankruptcy co-signer when I file in MN?When you receive your bankruptcy discharge, your liability on the debt is discharged, but your co-signors isn’t. What will happen to them after you file and whether their credit will be impacted by your filing are common questions.

When Your Bankruptcy Co-Signer Is NOT Filing Bankruptcy With You

If the co-signor is someone not filing a joint bankruptcy with you, like a spouse, they should not be impacted by your filing as long as payments on the debt stay current. This includes their credit, if payments stay current after filing, there shouldn’t be a drop in your co-signors credit, even though you filed for bankruptcy.

Check With the Lender About Co-Signer Policy

That being said, in some situations it is a good idea to have your co-signor check with the lender on what would happen if you filed for bankruptcy and your co-signor didn’t. Not all lenders have the same policies, and then you would have a solid answer. Your attorney can help you decide if it is a good idea to check on this or not.

When Your Co-Signer Is Also Filing Bankruptcy in MN

If your account is not current and payments are not made after your bankruptcy is filed, your co-signors credit will be impacted just as if you hadn’t filed bankruptcy. If the account isn’t current prior to filing your case, in most circumstances your co-signor’s credit is already taking a hit from the behind and missed payments.

Remember, the lender can still collect from your co-signor, they are not protected just because you filed. If your case is a chapter 13, there is something called a co-debtor stay, which can protect your co-signors.


If you have co-signors on your debt, reach out to Kain and Scott, we can help you determine what to do in your situation. Visit www.kainscott.com to speak with an attorney today. You will be glad you did!


Topics: co-sign

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