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separation/bankruptcy or proposal

My husband and i are separated. We rent, so therefore do not own a home. The credit card debt is in his name, approx. $40,000.00 as he was out of work for over 4 years.
I have a credit card in my name only and owe about $1800., i have also co-signed a loan with ford credit for the car(i do not drive).
He is thinking of filing either a proposal or bankruptcy but isn’t sure what the difference is and he is worried that either the proposal or the bankruptcy will affect me and the kids and he doesn’t want that to happen. Can you tell me what i would legally be responsible for and what the difference is between filing bankruptcy and a proposal.

Thank you so much

One Response to “separation/bankruptcy or proposal”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

You have identified 2 issues. The first issue concerns the difference between filing a proposal vs. a bankrutpcy, and this unfortunately far more depth than I am able to outline on this forum. I recommend you contact a trustee in your area and book an appointment to discuss the differences and similarities between these programs. The trustees you can access from this site should all provide an initial consultation free of charge that will provide an excellent venue for you to answer this type of question.

The second issue is one of the most common questions in situations where one family member considereing a bankruptcy or a proposal. The major types of debts that you must be concern with are those debts you have cosigned. In the event that your husband files a bankruptcy or proposal, while your husband will be cleared from these debts, anything you have cosigned you are fully responsible for. Again, as these issues are very situation specific, I recommend you contact a trustee directly and have him look at all the details of the contracts you have signed. This will allow him to provide a much more detailed description of your potential options.