Phoenix, Arizona Bankruptcy Attorney

How does an Arizona Bankruptcy Affect a Co-signer

Law Office Of

Joseph A. Velez


Real Estate & Business Law Attorney

Being a co-signer is a risk.  You are liable to the debt if payments are not made.  If you have co-signed for someone and they file bankruptcy, your debt liability is not included in the discharge.  Consequently, any person that co-signed a loan remains responsible for the debt.   The Bankruptcy Courts refer to co-signers as “co-debtor.”  While a Chapter 7 offers no recourse for co-debtors, a Chapter 13 has a “co-debtor stay.”  This prevents creditors from pursuing the co-debtor for payment until after the case is closed which can be up to 5 years later.  It is necessary to speak with an Arizona bankruptcy attorney in order to determine if you are eligible for a co-debtor stay.  It also may be possible to list the co-signer in the bankruptcy petition as they may have a viable claim.

Contact The Law Office of Joseph Velez with any co-signer liability questions.

The Law Office of Joseph Velez

Commercial Real Estate & Business Law Attorney

Scottsdale Financial Center

7272 E. Indian School Rd., Suite 111

Scottsdale, Arizona 85251


Our law office represents clients throughout the Phoenix, Arizona area including the cities of Scottsdale, Maricopa, Mesa, Surprise, Paradise Valley, Avondale, Gilbert, Chandler, Glendale, Florence, New River, Fountain Hills, Peoria, Surprise, Queen Creek, Tempe, Sun City, Apache Junction, and Casa Grande. We serve the counties of Maricopa, Yavapai, Gila, Pinal, La Paz, Yuma, and Pima County.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

One hour initial office consultation fee is $295 for the matters discussed above.