Archives for April 2014

What Happens When Only One Co-Debtor Files For Bankruptcy?

The Typical Co-Debtor Protection In most circumstances, when only one co-debtor files for bankruptcy protection, the non-filing co-debtor usually can maintain the property provided that the co-debtor continues to make timely payments. An interesting situation arose in a recent case. The particular property is a boat. Husband and wife both signed for and are responsible for the debt owed to the boat financing company. It turns out that husband was forced to file a chapter 7 bankruptcy case. The lender with the boat as security sent a reaffirmation agreement seeking to have the debtor reaffirm that debt despite the fact that there was a non-filing co-debtor spouse. When I contacted the + Read More

Chapter 13 Bankruptcy Requires The Debtor To Be Honest

My Recent Client I recently had the opportunity to speak with a chapter 13 debtor. This debtor had done a prior chapter 13, where the plan payment was $350 per month. The debtor was unable to make his monthly payment to the trustee and his case was soon dismissed. The debtor then came to my office to talk about re-filing chapter 13. This debtor had parking tickets owed to the city of Chicago which were causing his license to be suspended. He did have some other debt but the significant debt was that owed to the city of Chicago. We went through a confidential bankruptcy intake questionnaire, we agreed on a contract price, and we began to prepare his petition for filing. Upon further review, + Read More