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Contact Us
  • Toll Free: 800-360-9392
  • Pittsburgh: 412-391-8000
  • Erie: 814-451-1131

Schedule Your Free Consultation

Contact Us
  • Toll Free: 800-360-9392
  • Pittsburgh: 412-391-8000
  • Erie: 814-451-1131
  • Why Steidl & Steinberg
    • Our Difference
    • Our History
    • Our Commercials
    • Attorneys Against Hunger
  • Areas of Practice
    • Overview
    • Personal Bankruptcy
    • Business Bankruptcy
    • Taxes
    • Assessment Appeals
    • Student Loan Management
  • Our Attorneys
    • Meet Our Attorneys
    • Ken Steidl
    • Julie Steidl
    • Christopher Frye
    • Lauren Lamb
    • Abagale Steidl
    • Brian Dodson
    • Nathan Chase
  • Our Locations
    • Steidl & Steinberg Offices
    • Beaver
    • Belle Vernon
    • Carnegie
    • Erie
    • Greensburg
    • Hermitage
    • Meadville
    • New Kensington
    • Pittsburgh
    • Uniontown
    • Washington
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The Co-sign

Numerous bankruptcies, including Chapter 13 bankruptcy, have been caused by parties, particularly parents, co-signing or guaranteeing debt obligations of their children.

Susan owned a house worth approximately $75,000.00 with a mortgage lien of $40,000.00. Thus, she had $35,000.00 worth of equity in her home. Beyond her $550.00 a month mortgage payment, she had almost no debts, working as a nurse and living comfortably.

But her son, who had no credit, needed a car for a job that he had just acquired. He asked Susan to co-sign an $18,000.00 car loan. Susan agreed to co-sign the loan and, of course, never expected that her son would miss any of the monthly payments.

Unfortunately, the son’s job did not work out for him, and he quit after six months. Shortly thereafter, he relocated to California and Susan did not hear from him for several months. Then, Susan began receiving telephone calls and letters from the car’s loan company demanding the monthly payment. The finance company then repossessed and sold the car. The car was sold at an auction for significantly less than its value, and it left a deficiency on the loan in excess of $10,000.00.

Chapter 13 Bankruptcy

The finance company then sued Susan for this deficiency. Susan didn’t have the $10,000.00, and the payment plan offered by the finance company was too high for her, considering the debt she already had.

If only she could consolidate all of her debt at no interest! Well, she can, in a Chapter 13 repayment plan, In fact, because of her circumstances, she was able to reduce the total debt from $35,000 ($10,000 for the car deficiency and $25,000 in charge cards) to $20,000, saving her a lot of money. Susan was able to keep her house and everything else she owns.

For bankruptcy help, contact Steidl & Steinberg today.

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Steidl & Steinberg PC BBB Business Review
  • Overview
  • Personal Bankruptcy
    • Types of Personal Bankruptcy
    • FAQs
      • Former Bankruptcy Client
      • Current Bankruptcy Client
      • Prospective Bankruptcy Client
    • Could This Be You?
      • The Choice: Debt Settlement vs. Bankruptcy
      • Retirees Who Paid Their Dues
      • The Divorce
      • The Small Business Break-up
      • The Typical Chapter 7
      • The Avalanche of Medical Bills
      • The Overspender
      • The Co-sign
      • The Mortgage Foreclosure
      • The Lost Job
    • Step-by-Step
    • Resources
      • Bankruptcy Resources
      • Bankruptcy Glossary
      • Helpful Financial Links
  • Business Bankruptcy
    • Types of Business Bankruptcy
  • Taxes
    • Overview
    • How We Can Help
    • FAQs
    • Could This Be You?
      • Business Withholding Tax
      • Currently Uncollectable
      • Taxes and Filing Bankruptcy
      • Offer in Compromise
  • Assessment Appeals
    • Overview
    • Assessment Appeals FAQs
  • Student Loan Management

Archives

Steidl & Steinberg PC BBB Business Review

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