How does filing for Chapter 7 Bankruptcy affect joint debts?

When filing for Chapter 7 bankruptcy in Virginia, joint debts are affected in multiple ways. Joint debts, meaning two or more credit accounts that are held in the name of more than one person, are affected when one of the individuals involved in the account files for bankruptcy. When someone files for bankruptcy, the automatic stay is enforced; this caps the creditor’s ability to try to collect payment from the debtor. However, this does not mean that the creditor cannot try to collect payment from the other individuals listed on the joint account. This means that all of the people involved in the joint account are still liable for the entire debt. In some cases, the bankruptcy court may discharge, or relieve, the other joint account holders of the debt. This is usually when the debtor is the main source of the debt and the other individuals involved are not. This means that even if the account is still active, the other people associated with it are no longer responsible for the debt. Lastly, in some cases, a joint debt may be turned into an individual debt. This is usually only done in cases where the other individuals on the joint account can prove that they were not responsible for the debt. It is important to note that this process is not guaranteed and depends on the facts presented to the court. Overall, the process of filing for Chapter 7 bankruptcy in Virginia can have an impact on joint debts, depending on the circumstances. It is important for those involved to understand their full legal rights and the decisions that could be made in regards to their joint accounts.

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How does filing for Chapter 7 Bankruptcy affect joint debts?

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