What is the name of your state (only U.S. law)? I live in Louisiana my husbands dad got a business loan but garenteed it personally and my husband cosigned. Now his dad is filing bankruptcy but we are not able to do that. We paid $22,000 towards the debt and the rest will go to COD, who will get this debt or income? I am willing to pay the taxes on half of the money minus the $22,000 but I am not sure who will get the COD. Will it be us since we paid the money or will it go to the original signer on the loan?