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First, let me define what a co-signer is. A co-signer is the person who legally guarantees another person’s credibility to obtain a loan. A co-signer is sometimes required if the primary loan applicant has a negative credit history, according to the lender.  A co-signer accepts to be responsible for the repayment of the loan should the primary borrower fail to make regular and timely payments.
By virtue of contract, if the debtor fails to pay on the loan on a regular and timely basis, the co-signor is legally deemed responsible.   The co-signor is obligated to repay the debt even if they never used or had possession of the collateral in which they co-signed for.
If the primary borrower files for Chapter 7 bankruptcy protection he/she will most likely not be legally responsible for the repayment of the debt.  However, the co-signor will be responsbile for the outstanding debt, if any.  To avoid co-signor responsibility the primary borrower may file a Chapter 13 Bankruptcy or the co-signor themselves may seek to file a Chapter 7 Bankruptcy as well.
In Chapter 13 Bankruptcy the primary borrower will repay the debt, therefore avoiding any co-signor responsibility.  The good news is that in the Chapter 13 Bankruptcy, the Debtor has up to 5 years to repay the original debt and at a zero (0%) interest rate, thus lowering the payments and making them affordable.    Further, since the debt is being repaid, the co-signor is not liable for payments.
If there are any general questions or topics you would like to read about relating to bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008  or (877) 4-LAW-411 or email brad@sadek-cooper-site. Thank you.