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Bird & Van Dyke, Inc. - A Professional Law Corporation

Local Attorneys, Local Representation

Free Initial Consultation

Stockton 209-390-8877

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Bird & Van Dyke, Inc. - A Professional Law Corporation
STOCKTON
TRACY
Contact us for a
Free Initial Consultation

PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.

Local Attorneys, Local Representation

We help clients throughout Northern California overcome their legal challenges and move forward with their lives.

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Our inside knowledge gives clients the edge they need to defend themselves against criminal charges.

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At Bird & Van Dyke, we help clients put the pieces back together after being injured in an accident.

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LOCAL ATTORNEYS, LOCAL REPRESENTATION
LOCAL ATTORNEYS, LOCAL REPRESENTATION

It’s a common but difficult problem. If someone co-signs for a credit card or other loan for someone else, and if the person defaults on the account, then the co-signer become primarily responsible just like the original borrower. But what if the original borrower can’t be found and the co-signer is not able to make the payments or pay-off the debt. In California and elsewhere, the most effective solution is to file a personal bankruptcy. That will eliminate the debt for certain.

But let’s say the co-signer hesitates in filing a personal bankruptcy. The debt keeps rising due to the accumulating interest. They sue and get a judgment. Then one’s checking account is frozen one day.

The co-signer lets them keep the small balance but stops using checking accounts so that they can’t do that again. The co-signer ends up trying to handle everything in life on cash and traveler’s checks. It’s a living nightmare!

If the debt is substantial enough to cause serious discomfort and there are other bills that are behind, then a bankruptcy provides a strong resolution. Start the process by consulting with an experienced consumer bankruptcy attorney. In a straight bankruptcy, i.e., a Chapter 7, 100% of all unsecured debt, including credit cards, medical bills or any unusual debts like the co-signed fiasco mentioned above, can be eliminated.

Bankruptcy is a federal remedy that effectively discharges your unsecured debt, and reorganizes or resolves your secured debt appropriately. Once filed, a federal automatic stay is issued that prevents all further collection activities against the debtor. Although assets may be liquidated to pay creditors, that rarely happens in a typical consumer case. Usually, basic household belongings, clothing, some jewelry, and other furnishings are exempt from liquidation.

In California, if you have a home with a mortgage, you can reaffirm the mortgage in a Chapter 7 personal bankruptcy, keep making the payments as usual and get a discharge on all of your remaining debt. The same principle of reaffirmation applies to a car loan. All of these options, however, are dependent on the facts of the particular case so that it’s important to obtain a thorough evaluation with bankruptcy counsel prior to taking any action.

Source: Source: Top News Today, “Money Talk: Consider bankruptcy to deal with co-signer credit card debt,” Lisa Weston, July 15, 2013