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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Good Afternoon, In the very near future I am going to have

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Good Afternoon,

In the very near future I am going to have to file for chapter 7. My father is the co-signer
on a small loan that was a business loan, but was in my name. The business is now closed. He wants to pay it off. He is close to 80 and caring for my mom with Alzheimer's. I don't want him to know about the bankruptcy, he has enough on his plate right now. What will happen if I file and he paid off the loan? How long would I have to wait to file for it to not be an issue?

Thank-you,
Ann

WALLSTREETESQ :

If you file a chapter 7, the debt would be discharged from you,

WALLSTREETESQ :

however he would still be liable for it as a co signor,

WALLSTREETESQ :

if he pays it off,

WALLSTREETESQ :

nothing will happen to you,

WALLSTREETESQ :

Him paying the loan would have no bearing on your bankruptcy,

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback,

JACUSTOMER-40psih6u- :

So...If he pays it off prior to me filing the trustee won't go back and take that money from the bank and re-distribute it to the creditors? And... consequently the bank goes back to him to get the money again? Just so I'm clear; Once he pays it off, he is out of the picture, correct? If the trustee goes to the bank because the loan was in my name and it was paid off by someone else, they could take the money and re-distribute it, but there wouldn't be anything they could do to my dad, correct? Is there a time frame in which they look back to see what was paid off?

WALLSTREETESQ :

This will be tricky,

WALLSTREETESQ :

if he gives you the money to pay the creditor, it would be a preferential payment and the trustee can take it,

WALLSTREETESQ :

if he pays it off before you file,

WALLSTREETESQ :

since he is liable and he paid it off, the trustee should not consider it a preferential payment, what I would consider is reaffirming the debt,

WALLSTREETESQ :

not discharge it, if it was actually paid off,

WALLSTREETESQ :

by reaffirming it you tell the trustee you want to continue to pay it, and your father will be taking care of the debt,

JACUSTOMER-40psih6u- :

If he pays it off today and I file in a month or so, do I still reaffirm it? Will he know?

WALLSTREETESQ :

if he paid it off,

WALLSTREETESQ :

and you are no longer liable, you do not have to list it as a debt in your bankruptcy

WALLSTREETESQ :

he would not know

WALLSTREETESQ :


If you have any further questions please do not hesitate to ask.







If satisfied please provide us with positive feedback,



Customer: replied 3 years ago.

I am so sorry for the delay, I had to take a phone call.


It makes sense to me that I would not claim it because it was taken care of by someone other than myself and is no longer a debt. I guess I am just concerned they will wonder how the loan was taken care of and go back and take that money. I am probably being paranoid, but I want to make sure my basis are covered for my dads sake. Thank you.

Customer: replied 3 years ago.

So I don't list it as a debt, but do I have to list it as something paid off in the last year, even though I didn't pay it off?


This should be my final question to be clear about what I need to do and then I will give you feedback. Thank you!

you would not list it as a debt as it does not need to be discharged, you would not have to mention the debt, as you never paid it off, if you list it to be discharged the trustee may find out it was paid in full and question you, it is best not to list it, if it is paid off by your father.
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

Thank you!

Good luck

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