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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My husband has a line for credit on his corporation. I signed as a guarantor of the line.

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My husband has a line for credit on his corporation. I signed as a guarantor of the line. If he files for bankruptcy will I be affected? Also, can I be taken of the line of credit as a guarantor?

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

Did your husband also personally guarantee the business line of credit?

Customer:

yes he did. he has a corporation and the corp is in his name, but I signed the guarantor also

cfortunato :

Thank you for your response.

cfortunato :

If your husband files a Bankruptcy, and you do not, that will not show up on your credit report, and will not affect your credit rating.

cfortunato :

It will also not affect your liability for that debt.

Customer:

Really? Even if I signed as a Guarantor?

cfortunato :

Lastly, unfortunately, it is not possible for you to be removed a personal guarantor - unless you also file a Bankruptcy.

Customer:

Aren't I still responsible for the debt as a Guarantor if he files for bankruptcy?

cfortunato :

Yes - that is what I meant when I said, "It will also not affect your liability for that debt".

cfortunato :

His Bankruptcy filing will cannot affect your credit, but it will also not affect your responsibility to pay the debt.

Customer:

I own my house and am the only one on title. Will his bankruptcy affect my house?

cfortunato :

If the house belongs solely to you, and it is not marital property, then his Bankruptcy filing will not affect your house.

Customer:

Ok. The bank said something about if the line of credit does not get paid back that it will eventually be taken out of my social security. Is this correct?

cfortunato :

Absolutely not!

cfortunato :

Social security is strictly exempt (protected) from collection for this type of debt in all states.

Customer:

Ok. So they can not go for my house? Should I get my name taken off our joint accounts?

cfortunato :

Do you mean should you take his name off your joint accounts/

Customer:

Yes. And also he was thinking of filing for divorce as to protect me is he were to file. Does that make any sense?

cfortunato :

Any actions that are taken regarding accounts, and property, can be undone if they are undertaken less than 2 years before your husband files a Bankruptcy. So, unless he is planning to wait at least 2 years before he files, there is really nothing you and he can do at this point to protect or save anything.

Customer:

Ok. So none of my assets will be affected if he were to file for bankruptcy.

cfortunato :

Including commencing divorce proceedings.

Customer:

Did you get the last questions of my assets being affected by his possibly filing of bankruptcy?

cfortunato :

I just saw it.

cfortunato :

None of your assets that belong to you alone, and that are not marital property, can be affected by his Bankruptcy.

cfortunato :

Please let me know if there is anything else I can help you with.

cfortunato :

Thank you!

cfortunato and 3 other Bankruptcy Law Specialists are ready to help you

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