What happens to joint debts in Chapter 13 Bankruptcy?

In Chapter 13 Bankruptcy, joint debts are handled differently than individual debts. Joint debts are those that two or more people are responsible for paying. In Chapter 13 Bankruptcy, a debtor is only responsible for paying the portion of the joint debt that he or she is responsible for. This means that if there are two people on a loan, and one of them files for bankruptcy, the other person would still be responsible for the entire debt. The debtor that filed for bankruptcy would have their portion of the debt included in the repayment plan that is created in the bankruptcy. The repayment plan is based on the debtor’s income and other assets, and will outline the amount each creditor will get paid and the timeline of the payments. Some of the joint debts may be discharged or forgiven completely, depending on the type of debt and the circumstances. If the other person involved in the joint debt does not make the payments, the creditors can still pursue them for payment, and the debtor who has filed for bankruptcy may also be liable for any unpaid balance. To sum up, in Chapter 13 Bankruptcy in West Virginia, joint debts are handled differently than individual debts. The debtor is only responsible for paying the portion of the joint debt that they are responsible for. The portion of the debt that the debtor is responsible for is then included in the repayment plan that is created in the bankruptcy. The other person involved in the joint debt will still be responsible for the remaining balance, and creditors may pursue them for payment.

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What happens to joint debts in Chapter 13 Bankruptcy?

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