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? 28 Answers as of October 18, 2013

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Stephens Gourley & Bywater | David A. Stephens
If one files a chapter 7 bankruptcy, the other will still owe the debt. Under chapter 13 there is a codebtor stay from collection by the creditor at least during the pendency of the plan.
Answer Applies to: Nevada
Replied: 10/18/2013
Law Offices of Peter De Bruyn
Law Offices of Peter De Bruyn | Peter De Bruyn
If you are joint tenants on the card, the person who does not file BK will be liable for the $20,000.
Answer Applies to: California
Replied: 10/18/2013
Marc S. Stern
Marc S. Stern | Marc S. Stern
You mean that they have joint liability. If one files bankruptcy, the other gets to pay off the balance that the first discharges.
Answer Applies to: Washington
Replied: 10/17/2013
Law Offices of Daniel J Winter
Law Offices of Daniel J Winter | Daniel J Winter
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.
Answer Applies to: Illinois
Replied: 10/17/2013
Hayward, Parker, O'Leary & Pinsky, Esqs.
Hayward, Parker, O'Leary & Pinsky, Esqs. | Michael O'Leary
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.
Answer Applies to: New York
Replied: 10/17/2013
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    By co-owners, I believe you are probably referring to being co-signers? If so, then if one files a bankruptcy, the credit card company will then go after the co-signer who did not file bankruptcy. That's the risk of co-signing, of course.
    Answer Applies to: California
    Replied: 10/17/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The other one is stuck with the debt.
    Answer Applies to: California
    Replied: 10/17/2013
    Charles R. Chesnutt, P.C.
    Charles R. Chesnutt, P.C. | Charles R. Chesnutt
    If one files bankruptcy, then the other is liable to the extent that he is liable for the credit card under state law, which is probably liability for the entire amount only if he has signed an agreement with the credit card company, not simply if he had been a user of the card. If he had been only a user, then, he may be liable only for the charges that he made.
    Answer Applies to: Texas
    Replied: 10/17/2013
    Rhymer Law Firm
    Rhymer Law Firm | 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.
    Answer Applies to: Georgia
    Replied: 10/17/2013
    The Troglin Firm | William M. Troglin
    The party filing the bankruptcy would be relieved of legal liability on the jointly held credit card. The non-filing party would then be responsible for the total balance.
    Answer Applies to: Georgia
    Replied: 10/17/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby 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.
    Answer Applies to: Colorado
    Replied: 10/17/2013
    DeMars, Gordon, Olson, Zalewski & Wynner
    DeMars, Gordon, Olson, Zalewski & Wynner | Matt Jenkins
    The person can file individually and wipe out their liability on the credit card debt, but the co-debtor would still owe the full amount. They may qualify for a co-debtor stay if a chapter 13 is filed, although that would only prevent collection attempts for a while.
    Answer Applies to: Nebraska
    Replied: 10/17/2013
    Paul Stuber, Attorney at Law
    Paul Stuber, Attorney at Law | Paul Stuber
    The other person is responsible for the entire bill.
    Answer Applies to: Colorado
    Replied: 10/17/2013
    Danville Law Group | Scott Jordan
    The one filing the bankruptcy lists the credit card debt in Schedule F. The one not filing bankruptcy then becomes the sole obligee of the debt.
    Answer Applies to: California
    Replied: 10/17/2013
    Law Offices of Patrick Edaburn | Patrick Edaburn
    The bankruptcy would clear the bankruptcy filer of all liability but the other person would still be liable for the full amount.
    Answer Applies to: California
    Replied: 10/17/2013
    Law Offices of David A. Tilem | Michael Avanesian
    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.
    Answer Applies to: California
    Replied: 10/17/2013
    Elkington Law
    Elkington Law | Sally Elkington
    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.
    Answer Applies to: California
    Replied: 10/17/2013
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    The debtor would list the co-owner as a co-signer on Schedule H as well as listing the debt itself on Schedule F.
    Answer Applies to: Nevada
    Replied: 10/17/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Each is liable for $20,000. The bkry of one will not forgive the other .
    Answer Applies to: New York
    Replied: 10/17/2013
    Philip R. Boardman, Attorney at Law
    Philip R. Boardman, Attorney at Law | Phil Boardman
    Both would need to file. If only one files, the other is still liable for the entire amount.
    Answer Applies to: Virginia
    Replied: 10/17/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    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.
    Answer Applies to: Nevada
    Replied: 10/17/2013
    Idaho Bankruptcy Law | Paul Ross
    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.
    Answer Applies to: Idaho
    Replied: 10/17/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Then the one who files no longer owes that money and the other owes the entire amount.
    Answer Applies to: New York
    Replied: 10/17/2013
    William Bidwell, Attorney at Law | Bill Bidwell
    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.
    Answer Applies to: Michigan
    Replied: 10/17/2013
    Law Offices of Linda Rose Fessler | Linda Fessler
    The other person is responsible for the entire $20,000.
    Answer Applies to: California
    Replied: 10/17/2013
    T.D. Stevens & Associates PLLC
    T.D. Stevens & Associates PLLC | TD Stevens
    The co-debtor that does not file bankruptcy could still be pursued by the credit card company.
    Answer Applies to: Texas
    Replied: 10/17/2013
    Scott Goldstein | Scott Goldstein
    The other person will remain obligated on the loan. There is no real procedure - the person wishing to file files the case and gets discharged. The other one remains obligated.
    Answer Applies to: New Jersey
    Replied: 10/17/2013
    David Andersen & Associates PC | Jeremy Shephard
    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.
    Answer Applies to: Michigan
    Replied: 10/17/2013
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