Beware of the dangers in co-signing for another person:
In a hypothetical case of Joseph Debtor, a creditor was listed on the Petition and notice was properly sent. However, in addition to Joseph Debtor, there is also a co-debtor, Courtney Co-Debtor. The creditor can pursue the debt against the non-filing party, in this case, Courtney Co-Debtor. People often assume that the underlying debt has been eliminated in a Chapter 7 bankruptcy case. Actually, the liability of a particular debtor has been discharged in a bankruptcy. The underlying debt still remains as to any liable party who does not file for bankruptcy protection.
We see this often in the case of a co-signer to an auto loan. One party fails to make timely payments and the creditor pursues both the signer and the co-signer. If only one party files for Chapter 7 bankruptcy, the creditor is free to pursue the debt against the co-signer who has not filed.