Chapter 13 Individual Vs. Joint

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    Debts

    • If both members of a couple have separate debts, the bankruptcy of one does not relieve the other. Under Chapter 13, both spouses do not necessarily become liable for debt; only the one(s) who signed a loan or credit application become liable to pay back debt.

    Joint Property

    • Even though a spouse does not become responsible for her partner's debt, any non-exempt joint property she owns may become available to creditors in a Chapter 13 bankruptcy case. However, if the non-filing spouse acquires property after her spouse files for bankruptcy, creditors cannot receive that property as payment.

    Credit

    • Individual debts will not show on both partners' credit reports, but joint debts will. If the couple apply for a joint loan in the future, the Chapter 13 bankruptcy will appear on the credit report of both applicants, even if only one spouse filed for it.

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