Money owed on a loan that I co-signed for a person now in bankruptcy
My son declared bankruptcy last year and collection agencies are calling for money owed on a loan that I co-signed.
Are they allowed to this… they are taking money out of my account, is this legal? I am very confused and stressed about this situation.
Since you cosigned your son’s loan and he’s now Bankrupt you’re responsible for that debt. If your bank account is with the same bank that has the cosigned debt then they will have the right to remove funds from your bank account.
If your account is not with the same bank which has the the cosigned loan then that bank will have to get a judgment in order to take funds from your account.
You can also make an arrangement with the bank to have regular payments made on the loan. A trustee can help you with the stress and confusion you are feeling and can help you sort out all of the options you have available.