Question: What Happens If I Don’t File Bankruptcy, Am I Stuck with the Debt?
Question Detail: My friend and I purchased a timeshare together. Our friendship apart, but he said he would pay the bill but couldn’t because he lost his job. Now the timeshare debt is in collections. My friend wants to file bankruptcy to discharge the debt.
Answer: The creditor is likely to come after you for the debt if the debt is discharged in a bankruptcy by your friend. You signed a document that probably makes you liable for the entire debt if the other person does not pay the debt. Of course, it is possible that you signed only as a buyer and your friend is the only one liable for repayment.
If you are liable for the entire debt or only a portion of the debt, you will either be forced to pay the debt, have a judgment entered against you or if you are lucky, simply have the fact that you did not pay the debt listed at the credit bureau which will damage your credit rating.
You need to have an attorney such as myself review the document to determine if you are liable and whether you are liable for the entire debt or only a portion of the debt. Meeting with an attorney such as me can help you find out what to expect and to make plans for your future.
Call me, Nathan Davis, at 843.571.4042 for an appointment to go over the documents with you.