How does filing for Chapter 7 Bankruptcy affect joint debts?

Filing for Chapter 7 Bankruptcy in New Hampshire may have different effects on joint debts depending on the type of debt. For joint accounts that are both the responsibility of the debtor filing and the co-debtor, the Chapter 7 Bankruptcy filing will discharge the debtor’s obligation on the debt, but the co-debtor may still be responsible for the full balance owed on the debt. On the other hand, if only the debtor is responsible for the joint debt, the co-debtor’s obligation on the debt can be discharged as well. Additionally, Chapter 7 Bankruptcy can have an impact on a joint debtor’s other accounts. Creditors may be reluctant to open new credit accounts, or provide other services, to someone who is listed on a discharged joint debt. This is because the creditor may have difficulty collecting from a former joint debtor who is not obligated to pay the debt. Furthermore, if the debtor filing for Chapter 7 Bankruptcy has significant assets or if the joint creditors decide to sue the co-debtor after the bankruptcy is filed, the co-debtor may still be liable for the debt. Therefore, it is important for both parties to explore their legal options prior to filing for Chapter 7 Bankruptcy to ensure that all debts and liabilities have been accounted for.

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How does filing for Chapter 7 Bankruptcy affect joint debts?

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