QUESTION
What would be the procedure if two people are co owners of a credit card with a balance of $20,000 and one wants to file bankruptcy?
Asked on Oct 16th, 2013 on Bankruptcy - Michigan
15 ANSWERS
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Much depends on what the other account holder wants to do. The credit card company will pursue the other person. If the other owner cannot pay the debt, they would need to discuss filing bankruptcy with an attorney. If the other person still wants to pay for the debt, and doesn't want to file bankruptcy, they can just keep paying. It is best to consult an experienced bankruptcy attorney to discuss your options.
Answered on Oct 17th, 2013 at 11:05 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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You mean that they have joint liability. If one files bankruptcy, the other gets to pay off the balance that the first discharges.
Answered on Oct 17th, 2013 at 11:04 PM
Assuming both parties are jointly liable on the credit card and there are no underlying problems with the debt, such as fraud or recent "loading up" on the credit card, the party who filed bankruptcy will obtain a Discharge of his or her obligation to repay the debt, with the other party remaining fully liable for the entire $20,000.00 debt. However, if one of the parties is only an "authorized user" on the card, that party has no liability whatsoever for the outstanding balance. You should contact competent bankruptcy counsel to discuss these matters.
Answered on Oct 17th, 2013 at 4:34 PM
William Rhymer
Assuming you mean the two people have co-signed for joint liability on the credit card account, the one who filed a bankruptcy (a Chapter 7) would no longer have liability for paying the account. The other person would still be liable for the balance of the account if that person had in fact signed to get the account. If the non-filer was only an authorized user of the filer's account, then the at most the non-filer would be responsible for any charge tickets he or she actually signed.
Answered on Oct 17th, 2013 at 12:28 PM
Deborah F. Bowinski
Your question is not clear. One person can certainly file for bankruptcy if they wish. Assuming there is a balance owed on the credit card account the other party would remain fully liable for the entire amount of the balance.
Answered on Oct 17th, 2013 at 12:05 PM
2 Awards
The other person is responsible for the entire bill.
Answered on Oct 17th, 2013 at 11:42 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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Depends on the type of bk. Chapter 7, the other is still liable (whether the credit card company actually goes after 2nd holder is anyone's guess). In a 13, there is a co-debtor stay so both are protected. It also depends on the relationship between the two people, are they married? There is a community property stay. The list goes on.
Answered on Oct 17th, 2013 at 11:32 AM
Litigation Attorney serving Stockton, CA
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Patrick Jay Edaburn
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The bankruptcy would clear the bankruptcy filer of all liability but the other person would still be liable for the full amount.
Answered on Oct 17th, 2013 at 11:11 AM
The debtor would list the co-owner as a co-signer on Schedule H as well as listing the debt itself on Schedule F.
Answered on Oct 17th, 2013 at 10:31 AM
In a chapter 7 there is no co-debtor stay, so the other person would still be liable and the debt would be collect able against them. In a 13 there is a co- debtor stay, so as long as one of the co-debtors is in bankruptcy, the debt is noncollectable.
Answered on Oct 17th, 2013 at 10:30 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Both would need to file. If only one files, the other is still liable for the entire amount.
Answered on Oct 17th, 2013 at 10:06 AM
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You are both jointly liable for the entire balance owing. As such, if one files bankruptcy the other is liable for the entire amount of the debt.
Answered on Oct 17th, 2013 at 9:58 AM
If both applied as co-applicants as opposed to one person authorizing another to use a credit card, then the credit card company can collect from the person who did not file bankruptcy.
Answered on Oct 17th, 2013 at 9:31 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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It is required to be included on the schedules of the person filing bankruptcy. That person would be discharged of the debt where the other person would not.
Answered on Oct 17th, 2013 at 9:29 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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The one who wants to file the bankruptcy does and that individual no longer owes the $20,000 once the discharge goes through. The other non-filing co-debtor would still be responsible for the $20,000.
Answered on Oct 17th, 2013 at 8:02 AM