What happens to joint debts in Chapter 13 Bankruptcy?

In California, when it comes to joint debts in Chapter 13 Bankruptcy, there are a few different scenarios that could be applicable. In the first instance, if both parties filing for Chapter 13 bankruptcy were jointly and severally liable for the debt in question, then the liability of the debt is shared by both parties and each party would have to pay their share of the debt through their Chapter 13 plan. In the second instance, if one of the parties filing for bankruptcy was jointly liable and the other was only severally liable, then the Chapter 13 plan would require that the jointly liable party would be responsible for the entire debt, while the severally liable party may receive a discharge of the debt, depending on the situation. Finally, if both parties filing for Chapter 13 bankruptcy were only severally liable for the debt, then each party would have to pay their share of the debt through their individual Chapter 13 plans. Regardless of which scenario is applicable, it is important to note that when it comes to Chapter 13 bankruptcies, all creditors must be included in the repayment plan and all debts must be included in the plan, even if the parties involved are only severally liable for them.

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What happens to joint debts in Chapter 13 Bankruptcy?

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