If you have a joint account in collections and one person files bankruptcy what happens?
My girlfriend has an old account from an apartment with her ex and he plans to file bankruptcy. She is wondering what will happen with her portion of the debt when he files. Will she still be completely responsible, responsible for half or will it be completely wiped clean? Thanks in advance!!
Posted June 8th, 2010 in Bankruptcy Q and A. Tagged: apartment, bankruptcy, girlfriend, thanks in advance.
She will be on the hook for the entire amount. That is what jointly and severally liable means. Both owe the money and either both of them or one or the other is responsible to pay it. Basically he will be off the hook. She should call and see if they will accept a settlement. If they say they will then GET IT IN WRITING before she pays anything. Keep the settlement letter and the canceled check FOREVER because they will come back and try to get more money from her later.
June 8th, 2010 at 1:04 pmThey will come after her for the entire amount.
June 8th, 2010 at 1:04 pmNothing. When he files for bankruptcy, his portion of the debt will be dealt with by his bankruptcy. She will still have to pay her portion.
June 8th, 2010 at 1:04 pm