bankruptcy

Co-signing a loan is a dangerous thing. Too many people end up in bankruptcy due to debts they just co-signed for, so here are a few points worth considering before co-signing for a friend or family member.

1. There is a reason they need a co-signor. A professional lender does not think they will pay the money back. An objective professional (or underwriting standards) arrived at this judgment. Why do you think you know differently?

2. If they do not pay or miss payments, it will affect your credit.

In re Armistead Local Bankruptcy Court Mortgage Form Must Be Used An opinion by U.S. Bankruptcy Judge Marvin Isgur from the Southern District of Texas, Houston Division bankruptcy court, indicates that mortgage companies and banks must follow our local bankruptcy court’s rules, including a requirement that they attach a detailed mortgage account history to their Proofs of Claim.

In my Bankruptcy practice, I see people every day in the midst of a homeowner’s dilemma.  Try to save the house, walk away, file bankruptcy, do a modification, or what?  Most often, I spend time with them simply dispelling myths!

Here are seven of my favorites: