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Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog

“G” is for Guaranty in Bankruptcy

Posted by Peter Behrmann, Esq. On March 12th

Personal Guaranty, Chapter 7, Chapter 13 Livonia MichiganA 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.

 

The next questions I here:  What is going to happen to my sister’s car if I file for bankruptcy?

Well if your sister purchased the car and you co-signed on the purchase, your bankruptcy is simply going to eliminate the potential Guaranty liability if your sister was to not make her car payment on time.  Your sister can still maintain and keep her car, so long as she continues to make the payments as they come due.   You’re simply no longer on the hook if she was ever to default on the obligation.

 

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. 

 

I offer a one-hour in-depth consultation at no cost to explain the options you have to obtain a fresh start Call 734-779-9999 today!

 

Peter Behrmann is a Michigan Bankruptcy Lawyer.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

Photo Credit: TooFarNorth

 

Other Bankruptcy Attorneys Blogging on the Letter “G”:

  • Garbage In, Garbage Out – Wisconsin Bankruptcy Lawyer, Bret Nason
  • Garnishment – New York Bankruptcy Lawyer, Jay S.Fleischman
  • Garnishment – Maui Bankruptcy Attorney, Stuart Ing     
  • Garnishment – Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA
  • Garnishment – Daniel J. Winter, Chicago Bankruptcy Lawyer       
  • Gee!!! – Philadelphia Bankruptcy Lawyer, Ray Kempinski              
  • General Unsecured Creditor – Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell       
  • Gifts – Los Angeles bankruptcy attorney, Mark J. Markus              
  • Goals – Colorado Springs Bankruptcy Attorney Bob Doig
  • Good Faith – Taylor, Michigan Bankruptcy Attorney, Christopher McAvoy             
  • Good Faith – Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein 
  • Good Manners – Cleveland Area Bankruptcy Lawyer, Bill Balena
  • Good to me – San Francisco Bankruptcy Attorney, Jeena Cho     
  • Guaranty – Northern California Bankruptcy Lawyer, Cathy Moran
  • Guilt – Jacksonville Bankruptcy Attorney, Monica D. Shepard      
  • Gumshoe – Marin County Bankruptcy Attorney, Catherine Eranthe         
  • Guilt – Detroit Michigan Bankruptcy Attorney