Can there be a joint debt and one party filing for chapter 13? 15 Answers as of September 27, 2013

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Deborah F Bowinski, Attorney & Counselor at Law | Debby 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.
Answer Applies to: Colorado
Replied: 9/27/2013
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
You need to speak with a knowledgeable local attorney. If you are thinking about filing a Chapter 13 on your own think again! I was at a 341 hearing last week when the Trustee made a speech about how tired he was of dismissing cases because they were not prepared correctly. He explained to the debtors that he could not give legal advice and the law is so complex that no one should attempt to file their own Chapter 13.
Answer Applies to: California
Replied: 9/27/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes. There is a co-debtor stay.
Answer Applies to: California
Replied: 9/27/2013
Richard L. Hirsh, P.C. | Richard L. Hirsh
Yes and automatic stay under chapter 13 would apply to the co-signer if it is consumer debt.
Answer Applies to: Illinois
Replied: 9/27/2013
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
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.
Answer Applies to: California
Replied: 9/27/2013
    Chung & Press, LLC
    Chung & Press, LLC | Brett Weiss
    Yes. However, the joint non-filing spouse's obligation for the debt would not be discharged. Take care.
    Answer Applies to: Maryland
    Replied: 9/27/2013
    Portland Bankruptcy Law Group
    Portland Bankruptcy Law Group | Christopher J. Kane
    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.
    Answer Applies to: Oregon
    Replied: 9/27/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Yes, you must include joint debt in your Chapter 13.
    Answer Applies to: Nevada
    Replied: 9/27/2013
    Maskell Law Firm, P.C.
    Maskell Law Firm, P.C. | Eric A. Maskell
    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.
    Answer Applies to: Texas
    Replied: 9/27/2013
    The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
    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.
    Answer Applies to: Wisconsin
    Replied: 9/27/2013
    Law Offices of David A. Tilem | Michael Avanesian
    Yes, codebtor and community property.
    Answer Applies to: California
    Replied: 9/27/2013
    Law Offices of Linda Rose Fessler | Linda Fessler
    Yes, but the other person will be responsible for any amount that you do not pay on the debt.
    Answer Applies to: California
    Replied: 9/27/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Yes, if it is a "consumer" debt, the co-debtor will be protected during the Chapter 13. Interest accruing during the Chapter 13 will not be discharged as to the co-debtor as well as any unpaid portion of the debt.
    Answer Applies to: New York
    Replied: 9/27/2013
    Law Offices of A. J. Mitchell, LLC
    Law Offices of A. J. Mitchell, LLC | A. J. Mitchell
    Yes - but the creditor can continue to pursue the non-filing party for payment.
    Answer Applies to: Georgia
    Replied: 9/27/2013
    Idaho Bankruptcy Law | Paul Ross
    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.
    Answer Applies to: Idaho
    Replied: 9/27/2013
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