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Asked 2/19/2008

Is anyone familiar with bankruptcy law?

I know of someone who is going through a divorce. Her soon to be ex was managing their local business (store) and now she just found out he filed a chapter 7 bankruptcy without her. Where will this leave her now? Will the creditors go after her for the money or will the debts be discharged for her as well even though she didn't file jointly with him?

 
 
 
 
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Answer 1/2 - Submitted 2/19/2008

A chapter 7 is basically a personal bankruptcy, where as most businesses file for chapter 11 relief. If he did file for personal bankruptcy, then creditors can go after her for any jointly held accounts.

 
 

Answer 2/2 - Submitted 6/17/2008

The only way the creditors will go after her is if the ex filed on debts that were co-debted with her. If she was not a co-debtor/co-signer, they have no right to collect from her unless there are some medical debts that were incurred during the time they were married. Other than that, she should be OK. If he receives a discharge of his debt, that does not relieve her from any liability on any debts that she is a co-debtor on. The discharge pertains only to him, since he is the only one that filed the bankruptcy.

 
 
 
 
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