Personal Guaranty, Chapter 7 ,Chapter 13 Bankruptcy Livonia Michigan
A Guaranty is a creditor that is often forgotten about when people file bankruptcy. Regardless, the bankruptcy code is very clear that you have to list ALL of your creditors when you file bankruptcy. One of the first things you will receive when you visit my Livonia Bankruptcy Office is a list of disclosures that I am required to supply you with under the bankruptcy code. The Bankruptcy Code is very clear; you must list all of creditors, including Guarantees.
I think the number one reason people forget about their Guaranty debt, is because it is usually not the debt that’s currently forcing them to visit me. Sometimes the debt they guaranteed is not even on their credit report, they may not receive monthly bills on the Guaranty and to them they do not really feel they owe the debt. I hear it all the time, “That’s not my car loan, it is my sisters, I just co-signed for it.” Nonetheless, it is very important that we discover these debts and list them in your bankruptcy for your protection.
Let’s look at the definition of Guaranty. A Guaranty is a formal pledge to pay another person’s debt, or to perform another person’s obligation in the case of default. Further, a Guaranty is serving as security for a pledge to pay a debt.
Some examples of Guaranty’s that need to be listed in your bankruptcy are:
- Serving as a co-signer on a car loan for a friend or family member
- Serving as a co-signer on any other debt for someone else
- Guaranty’s on debts for a business
- Guaranty’s of your family members student loans.
As you can see Guaranty debts are just as important as any other debts you have when your file bankruptcy. The best advice I can give you it to make your bankruptcy attorney 100% aware of any and all debts you have, including co-signed and Guaranty obligations you have.
With our offices centrally located in Livonia, we represent clients throughout Metro Detroit and beyond, including Westland, Garden City, Wayne, Redford, Belleville, Farmington Hills, Plymouth, Canton , Taylor, Romulus, Northville, Commerce Township, Wixom, Dearborn, West Bloomfield and Detroit