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Co-signor taking him to small claims court

My husband has been discharged from his bankruptcy for almost 3 years. A couple of months ago, he got served and had to go to small claims court the beginning of December. His exgirlfriends parents, co-signed on his and his exgirlfriends mortgage. They had to pay the bank 10,000 because my husband had included the mortgage in his bankruptcy and they had cosigned. They took him to small claims court and are asking for the 10,000. The judge remanded the case and said she will have her verdict on the 19th of January. Can she make him pay this? I thought that since he included it in the bankruptcy that he wouldn’t have to pay anything for it. I’m confused.

Posted from: Manitoba

One Response to “Co-signor taking him to small claims court”

A licensed trustee said...

I strongly suggest you speak to a lawyer experienced in insolvency matters. The debt should have been discharged by your husband’s discharge from bankruptcy, but the Small Claims Court may not be familiar with bankruptcy laws – that is likely why they withheld their decision. If the decision goes against your husband (the Court says he has to pay) then spend the moeny on a lawyer to appeal it. If you win the appeal then you should also be awarded your legal fees…