QUESTION
Can there be a joint debt and one party filing for chapter 13?
Asked on Sep 26th, 2013 on Bankruptcy - Idaho
10 ANSWERS
Deborah F. Bowinski
Of course. However, the non-filing borrower (or cosigner) will remain obligated on the account. The Automatic Stay remains in effect for the duration of the chapter 13 plan as to the co-borrower unless the creditor seeks and obtains Relief from the Stay, but once the chapter 13 case is finished the creditor will be free to pursue collection from the party who did not file for bankruptcy.
Answered on Sep 27th, 2013 at 7:29 PM
Richard hirsh
Yes and automatic stay under chapter 13 would apply to the co-signer if it is consumer debt.
Answered on Sep 27th, 2013 at 2:05 PM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Yes but the more important question and one I think you're actually trying to figure out is what will happen to the debt as it pertains to both of the parties (you and the spouse). The answer to that question will depend on what type of debt it is and how your chapter 13 Plan will be handling it. It's impossible to answer this question without actually looking at quite a number of details in your situation, household income, debts types and amounts, assets, types and values, reasonable and necessary living expenses. These things will all contribute to an answer.
Answered on Sep 27th, 2013 at 1:39 PM
Yes. However, the joint non-filing spouse's obligation for the debt would not be discharged. Take care.
Answered on Sep 27th, 2013 at 12:54 PM
You can file a case yourself and include that joint debt in the case. If you file Chapter 13, there is a "co-debtor" stay that goes into effect that protects the non-filing co-debtor from collection activity while you are in Chapter 13. But, when the case is over your liability on that debt will be discharged but the co-debtor will still remain liable for the debt.
Answered on Sep 27th, 2013 at 12:27 PM
Yes, you must include joint debt in your Chapter 13.
Answered on Sep 27th, 2013 at 12:10 PM
Family Attorney serving Hurst, TX
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Law Office of Eric A. Maskell
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Yes. However, the creditor still has the option to pursue the non-filer after the bankruptcy has discharged. Only the party actually filing the bankruptcy and receiving the discharge would discharged.
Answered on Sep 27th, 2013 at 11:42 AM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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You may file individually on joint debt, but there are many factors to consider whether that is appropriate for you. Talk to an attorney about your entire situation.
Answered on Sep 27th, 2013 at 11:10 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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Yes, codebtor and community property.
Answered on Sep 27th, 2013 at 10:40 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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All debts belonging to a person who files bankruptcy must be listed. This includes in a Chapter 13. Therefore, the joint debt must be included. Be aware that if this joint debt is modified or not discharged in a bankruptcy, then there may be some interest or other issues that may relate both to the debtor and the co-debtor.
Answered on Sep 27th, 2013 at 9:41 AM