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Assuming this is a straight bankruptcy, the mortgagee would lose the money that is owed to it on the mortgage loan. A bankrupt person or corporation loses all of his/her/ its assets to the Trustee in Bankruptcy so that the Trustee can liquidate those assets and distribute the net proceeds to the creditors. The mortgage loan is an asset which is then sold to the highest bidder along with the mortgage lien. The mortgage holder will now make the mortgage payments to whoever purchased the mortgage loan from the bankrupt estate. The mortgagee is left with nothing.
You will generally be notified and have to timely submit documents - a proof of claim - to support how much you are owed. Then depending on a number of factors, what the debt is for, if it is secured, howm much assets the debtor has, etc., and how big a creditor you are...your participation in a plan to eliminate or restructure the debt with the other creditors, as part of the court process, will be available. The court will ultimately determine an acceptable plan, (albeit hopefully with the approval of creditors), and the assets of the debtor are used to pay off the debts...normally, with each creditor getting less than the were fully entitiled to.
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What if happens if you cosigned for car loan and the borrower files for bankruptcy?
if the consigner files bankruptcy can the borrower take the car
What happens if a co signer files bankruptcy?
They both go bankruptcy
Can the primary borrower continue paying car loan if co-signer files chapter 7 bankruptcy?
Has to
Will a cosigner on a mortgage be notified if a borrower files for bankruptcy?
They should be, however if the petitioner does not list, they may not be notified. However, there are ways to verify if a petitioner has filed for bankruptcy.
What happens to the co signer if the borrower files bankruptcy?
If you are talking about someone who cosigned for your loan filing bankruptcy, As long as you continue to make your payments on time, nothing will happen. If you are talking about someone you cosigned for taking bankruptcy, you may very well have to pay this loan. Contact the lender.
Is the borrower responsible if the co signer files bankruptcy?
Yes, co-signer means obligated as a guarantor of the note, but the federal bankruptcy can excuse the obligation as part of the settlement.
When a company files bankruptcy what happens to the union contracts?
They can be changed by the Court.
What happens to your wage garnishment when the company files bankruptcy?
your wages still garnished
What happens when a business is owed money by a company that files for bankruptcy?
Need the right answer
What happens if car dealership files bankruptcy how do you pay for vehicle?
If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.
What happens to your ticket when an airline files bankruptcy?
Nothing, the ticket is not a debt and would not be included in their bankruptcy. The ticket should still be good.
What happens to your money if your bank files for bankruptcy?
Banks are insured up to 100,000.00 by the government.
