joint debt

August 17th, 2006 by Questions

I am thinking of declaring bankruptcy due to loss of income. I have been unemployed for 6 months. I currently have three credit cards in my name plus a line of credit and overdraft at my bank. Total debt is approx. $24,000.00 I also have joint credit cards in both my name and my husband’s. My husband has been able to keep up with his debt. but cannot pay my debt. If I declare in my name only, what happens to the debts that are in both of our names? What will happen to my bank account? Will the credit line and overdraft be eliminated? Will my bank close my account? I currently have automatic payments coming out of this account.


One Response to “joint debt”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

If you declare bankruptcy you will be cleared from most unsecured debt. If you hold any of this debt jointly with anyone it essentially removes your name from the contract and the other party (i.e. your husband) will have to ensure the contract gets paid in full. As for a bank account, to make your life easier you will close your existing account and open a new account with an institution you don’t owe money to. This way no more payments can be taken out and you can start fresh.

For more information and I suggest you contact a licensed trustee in your area and he will be able to clarify any of these details.

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