Q: Can I file chapter 13 bankruptcy on 2 loans that my ex Cosigned on if my divorce decree states I will take on the debt?
My ex-wife co-signed a personal loan and vehicle loan while we were still married. Our divorce recently finalized and in the divorce decree it states that I will take responsibility for both loans. I am past due on both loans due to loss of income. I had to switch jobs due to medical issues.
I want to include both loans in Chapter 13 bankruptcy but I want to know if there are any legal repercussions as a result. My ex-wife is a vicious person and her mother and father will gladly pay way too much money to a lawyer if it means hurting me even in the slightest. If I file chapter 13 bankruptcy and agree to repay both loans through bankruptcy will her name be removed from the loans and will there be any legal actions she can take against me?
A: This needs the attention a good, local bankruptcy lawyer.
On general principals a Chapter 7 can discharge your obligations, but that does not discharge the debt on her part--she still owes it. Depending on the terms of your divorce decree it is possible that the divorce court could still order you to pay it.
On the other hand, the 13 might work out, but nothing "removes her name" short of payment or her discharge.
A: Good Morning,
You can include the loans and if you complete your bankruptcy then you will no longer be personally liable.
Since the bankruptcy does not include your ex-wife then she will still be liable.
She can file against you in family court if these were debts were assigned to you in the divorce and the creditors are now attempting to obtain payment from her or if this negatively impacts her credit.
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