QUESTION
Can my husband file bankruptcy without his co-signer? How?
Asked on Jun 25th, 2015 on Bankruptcy - New Jersey
More details to this question:
My husband wants to file bankruptcy as soon as possible. But he has 3 joint accounts with his ex-wife, (2 repossessed cars and 1 foreclosure on TimeShare), she was the co-signer. Can he file for his or do they have to file jointly?
7 ANSWERS
No question he can file. I don't know about the ramifications on the divorce matter. He should probably call his divorce lawyer and pay for an hour of his or her time to make sure everything will be alright assuming he files for BK.
Answered on Jun 29th, 2015 at 2:20 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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He may not file jointly with someone who is no longer his spouse. They could each file separately, if they wished. As to the joint debts, if he files and she does not, the creditors are free to collect from her. This does not make for good relations among the divorced spouses. Also, if he was allocated the debts in the divorce they really are not discharged in the BR, and he may have to pay them anyway at least if he does not live in a marital (community) property state.
Answered on Jun 26th, 2015 at 5:43 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Only married couples can file bankruptcy jointly. So, it's not possible to file a joint bankruptcy with an ex-spouse. As cosigner, she will remain liable on the debts that he has discharged in bankruptcy.
Answered on Jun 25th, 2015 at 6:47 PM
A joint bankruptcy petition can only be filed with a current spouse, not an ex-spouse. The fact that the ex was a co-signer is of no importance at all.
Answered on Jun 25th, 2015 at 6:11 PM
Yes, he can file without his co-signer but he should list his ex on Schedule H and identify the debts they share. He should make sure that she gets notice of his bankruptcy, because it is likely that the creditors will come after her next. From your description, he should have no problem discharging his responsibility on those debts, but his filing will not relieve his ex of her responsibility on those debts. She may need to file bankruptcy too, depending on how big the debts are. She cannot file jointly with him because they are no longer married. She would have to file her own case if she decides to go that route.
Answered on Jun 25th, 2015 at 6:09 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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He can file individually. Only currently married spouses can file jointly. Since he is married to you, he cannot file a joint petition with the ex. The question is whether you should file with him. I don't see why you should but that is a vastly different and much more complex question.
Answered on Jun 25th, 2015 at 5:19 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If they are not married, they can not file together. She should be listed in the Petition as a responsible party or Co-Debtor for those Debts. Not to throw a monkey wrench in his plans, but did his divorce decree determine that he is responsible for those debts? If so, you really need to check with a lawyer as to the ramifications of doing this.Just being cautious.
Answered on Jun 25th, 2015 at 5:11 PM