Joliet Bankruptcy Lawyer Cautions Regarding Joint Debt

Joint debt is never eliminated simply because one party files for bankruptcy relief.  Since the debt is joint, the creditor has every right to seek to collect from the non-filing debtor.  This is often the case when couples are divorcing and each party is a signatory to the debt.  If one spouse files for bankruptcy relief, the non-filing spouse is not off the hook.  This is why it is critically important to address allocation of debt issues in divorce cases.  The creditors do not have to abide by the divorce decree.  However, one spouse will have the right to seek redress from the divorce court if a former spouse does not follow the Judgment. 

If you are joint on a debt and the other party files for bankruptcy, do not think for one second that you are off the hook.  Quite the contrary in fact.  Now the creditor has only one party to collect from and that is you.  If you have too many creditors that you are unable to pay, then you may wish to consider filing for Chapter 7 bankruptcy protection to end your debt.  My office can assist in that filing and get you on the way toward your fresh start.