Question concerning a co-signed loan

[mark1210]

What is the name of your state? Texas

I co-signed on a loan recently for a medical procedure, I was told by the lenders that I was the primary reason the loan was approved because of my excellent credit history. Now fast-forward about 3 months, I have a inclination that this friend is going to be filing bankruptcy. How can this impact me? I would imagine that the lenders would come to me which I cannot afford to pay with my recent home purchase.

With this in mind, could I be taken to court, have to disclose my assets (House, Car) and risk losing them? Not quite sure how the law works in Texas. If I am correct with my assumption what are my choices to protect my assets?

Thanks!

 

[djohnson]

You can't protect anything. You co-signed the loan and it make you just as responsible. You will have to make the payments or risk losing your good credit and having them take you to court. If they win judgment, they can garnish your wages or put lein's on your property. It was a chance you agreed to when you signed.

 

[racer72]

Everything in johnson's post is correct except Texas does no allow garnishment of wages for civil judgments.

 

[djohnson]

sorry missed that