Co-Debtors and Bankruptcy

When you file bankruptcy, the court will want to know if anyone else could be responsible for the debt you are attempting to discharge. They may look for these other parties, called co-debtors, in attempts to collect amounts unpaid by your discharge.

Some of your debts may have co-debtors, co-signers, ex-spouses, non-filing spouses, or joint contractors. If you file a Chapter 13 bankruptcy, your co-debtors will be responsible for whatever debts are left over when you complete your bankruptcy plan. That means, if you are married and filing without your spouse, they will be held responsible for the debt if you live in a community property state.

The bankruptcy court will want the names and addresses of any spouse or former spouse for the last eight years before filing bankruptcy, especially if you live in a community property state.

Co Debtor Stay

The bankruptcy filer will be automatically protected from the creditor’s attempts to collect. The filer can ask the court for a second stay to protect their spouse from collection attempts during the process.

There will usually not be a second stay for co-debtors in a Chapter 7 bankruptcy since the filer is attempting to discharge all of the debt. In that case, the creditors will go after the co-signers or co-debtors for payment.

If you are a co-debtor and the other person is filing bankruptcy, you will want to obtain the advice of a Roseville bankruptcy attorney to ensure you will not be responsible for the debt.