Recent Updates
April 28, 2010
State Must Prove Defendant's Knowledge of Driver's License Suspension
April 13, 2010
Sentencing Commission Votes to Eliminate Recent Criminal History Points
October 15, 2009
Consent to search inside of vehicle does not extend to locked containers
October 14, 2009
Making phone calls to get drugs for personal use not a felony
October 07, 2009
Duval County schools agree to reduce number of students getting arrested
Chapter 7 vs. Chapter 13 filings with co-debtors
January 05, 2009
Topic: Bankruptcy
Assuming a debtor is eligible to file a Chapter 7 or a Chapter 13, one of the many issues to consider is whether your debt is held jointly with another person, often a spouse, child, or parent. If you file for bankruptcy under Chapter 7, your co debtor likely is liable for the entire debt, leaving them exposed to litigation to collect on the debt upon your filing of bankruptcy.
However, Chapter 1301 of the bankruptcy code protects co-debtors on consumer debts from collection activities while another co-debtor is in Chapter 13. A "stay" of the collection proceeding on the co-debtor is effective immediately upon the filing of a bankruptcy, and the collection agency would have to get a lifting of the stay in order to further its collection efforts. If payments are begun as soon as possible or if the account is current, the debtor and co-debtor often are protected, at least during the 3 to 5 years that the bankruptcy proceedings plan is in effect.
