Alternatives to traditional cosigning
At Atlas Law Firm, our team of professionals can help you review these details, including providing answers to frequently asked bankruptcy questions that you may have.
In recent articles, we discussed the various repercussions that Chapter 7 and Chapter 13 bankruptcy can have on both a cosigner and a consignee in the event that either party decides to take advantage of court protection. While Minnesota bankruptcy attorneys can help both parties right their finances in this scenario, some borrowers may be eager to avoid this kind of legally binding agreement altogether.
If you require the help of a cosigner for a student loan, home loan or credit card, you may want to choose options that won't put your cosigner's credit score and financial reputation at risk.
According to Minnesota Attorney General's office, there are three ways around this financial relationship that you and your cosigner may benefit from considering:
• Taking out a private loan – While beneficial, this extension also comes at risk to the private lender and requires a trustworthy borrower.
• Using a cash gift – Like the aforementioned alternative, this option has its own drawbacks depending on the character of the recipient and should not be considered lightly.
• Working together to secure a loan – This can be done through research or in-person assistance at a bank or credit union.
Of course, if your finances are precarious enough for a borrower to consider these options, you may benefit from direct consultation with an Anoka, Washington or Carver County bankruptcy attorney that can help you weigh the potential benefits of a protective filing.
For instance, if debts and late loan payments are preventing you from securing the necessary borrowing by lowering your credit score, bankruptcy could provide a long-term solution to this issue. At Atlas Law Firm, our team of professionals can help you review these details, including providing answers to frequently asked bankruptcy questions that you may have.