Moneys owed jointly


#1

Hi I incurred a debt from a HELOC loan under both of our names without my wife knowing it
The money was stolen(a unknown to me ponzi sceme)
I had a business which I lost and fell into debt trying to keep it afloat.
I was keeping up the payments on all these loans until the HELOC loan people
called it in without notifying us and ran us into credit oblivion.
Because of that action I now have to go bankrupt which I will in January
We are still friends and I do not want her to pay the moneys back and I cannot afford it
If she gets a court order making me pay the loan and then I go bankrupt
will that enable her not to be liable for this loan?
Help
It will be very hard to get close to the $5-7000 to pay for a lawyer for this one problem
I don’t have much more than to pay the bankruptcy attorney
Help


#2

If two parties incur a debt (i.e. the loan is in both of their names), both parties are liable for the loan, until it is paid off, charged off (declared a bad debt), or discharged in BK. (However, a discharge in BK for one party has no effect on any other parties liable for the loan.)

In essence, the answer to your question is “No.”


#3

I do not practice in the area of bankruptcy law, however would suggest, since the HELOC is in both of your names, that you talk with your bankruptcy lawyer to see if it would be beneficial for your wife to join in the action.