Well each year I have to send in my tax documents for review by the trustee.
presumably you reported this on your tax filing so it would be covered, right?


Also, how can this effect the co-signer? Should I inform him of what is going on?
If you had somebody that was good enough to you to be willing to co-sign for you, I would think you would want to let him know what was happening. For some reason, the creditor ignored the fact there was a co-signer. I suspect it was based on you stating things as you did and they simply did not double check their records. That is their fault but you lying is yours.

Jail is a possibility for such actions but generally not realistic. You would more likely be fined and maybe have your BK discharged but it is up to the courts.