Can I co-sign for my son’s loan?

My son needs me to co-sign for his loan but I’m going to file for chapter 13. Am I allowed to be a co-signer?

One Comment

  1. There is no prohibition against it, but I don’t think it’s a wise move. You are adding more debt onto your plate. I never recommend co-signing for anyone even a spouse. I know that’s easier said then done and emotionally you want to help a family member. By co-signing you become 100% liable for the loan and the creditor will look to you if your son doesn’t pay. If a joint or co-signed debt is being paid in full under a Chapter 13 repayment plan, then the creditor is not allowed to collect the debt from your son. If a joint car loan is not being paid in full under the plan, the creditor is allowed to collect the unpaid portion of the debt from your son.

    In a chapter 13 case, you are adding a “secured” debt which must be paid in full (with interest) and depending on the particulars of your case may be overly burdensome. Consult with your attorney before signing your name. The idea is to get out of debt, not accumulate more debt.

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