Question: When two people are co-debtors on a debt what happens if one party files for bankruptcy?

Answer: If two people are both responsible for a debt, the debt both people share is called "joint debt". If one of the joint debtors, Person A, files for bankruptcy Person A could be relieved from paying that joint debt. Person A no longer is responsible for paying back the money owed.

The other debtor, Person B, will not be relieved from paying the debt. Person B would now be the sole person responsible for paying back the joint debt. Person B is "still on the hook" for all of the money still owed unless Person B also files for bankruptcy.

Person B could also file for bankruptcy on the same joint debt. Even if Person A already did. Both could file for bankruptcy and get rid of the debt. The order of who files first does not matter.

Contact Attorney Cathe Evans Williams of The Evans Williams Law Group at 708-991-7110 if you have any additional questions.