If you are thinking of filing for bankruptcy to get rid of the debts you have, you may want to consider how this will affect the joint account holders you have. A joint account holder is a person that is listed on a debt with the main account holder, and a joint account holder is viewed as equally responsible for the debts. When you file for bankruptcy on your own and have joint account holders, you should understand how this will affect them if you decide to proceed with filing.
They Will Be Held Solely Responsible
If you qualify for Chapter 7 bankruptcy, the unsecured debts that qualify will be forgiven. In other words, once your bankruptcy estate gets discharged, you will not owe the money for these debts. They will be completely gone, and you will never have to be responsible for paying these in the future. In fact, the creditors of these debts will never be able to contact you or come after you once you file for bankruptcy.
Unfortunately, the creditors can go after the joint account holders of these debts. As soon as you file, the creditors are likely to begin calling the joint account holders and sending them letters. These individuals will become completely responsible to pay these debts as if they were their debts alone, and there is nothing you can do in bankruptcy to stop this from happening.
The Options You Have
If you do not want to leave your joint account holders in this position, there are several options you could consider. The first is to take their names off the debts before you file. If you can successfully get the debts in your name alone, you will not have to worry about this problem. Before you rush into using this option, talk to a bankruptcy lawyer to make sure that you do this far enough in advance so it will not jeopardize your ability to file for bankruptcy.
A second option is to go through with the bankruptcy with their names on these debts. If you want to make it right with these individuals, you could offer to pay them back for these debts so they are not left paying the debts that you actually owe.
Filing for bankruptcy is a great option if you owe a lot of money that you cannot repay, but it can affect joint account holders. If you have questions about this, contact a bankruptcy attorney today.
