joint debt and bankruptcy

April 14th, 2009 by Questions

Me and my husband have joint debt…currently separated and he decided it would be beneficial if just one filed to give each other a fresh start…he cannot get any of the debt in just his name so he cant file alone…does this mean we both have to file?

Posted from: Ontario


One Response to “joint debt and bankruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If you and your husband are listed jointly on the majority of your debt, there would be very little benefit to one of you filing a bankruptcy as the other party would still be fully responsible for the debt. The only way around this is if you are able to get the bank to remove one of the names off the debt prior to filing bankruptcy, but as you can guess it is very unusual for a bank to take a name off joint debt as then they are in a more risky position.

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