Joint Debts Under Bankruptcy: Would They Be Gone?
A lot of spouses are confronted with the question whether or not they would be absolutely freed of their payment obligations for debts if ever one or the two of them declare bankruptcy. This is clearly because they consider bankruptcy as their only way out of the debt burden. When an individual no longer has the capacity to pay his debts because he has been deprived of any means to do so, there may indeed be no other solution left but to just declare bankruptcy. When one declares bankruptcy, the creditors could no longer force the individual to pay his debts.
What would happen to joint debts, especially those made by spouses? Would they be the gone too? If both spouses actually declare bankruptcy, then what would happen is basically the same as when an individual puts himself in the same situation. The debt could no longer be collected by the creditor. In other words, both spouses are absolutely freed from debt. However, it is impossible for both to declare bankruptcy as one entity. Each one of them may declare so but not as a couple. This may be the problem here. If only one of the spouses declares bankruptcy, he or she would be the only one that is unloaded of the burden of paying for the joint debt.
The spouse or the partner in the joint debt that does not declare bankruptcy would naturally have to cover the payment for the joint debt. Of course, this would be a huge burden on his and her part, considering that the value of the debt may still be big despite the minor or initial payments that may have been made before. However, it is also possible that couples may actually do this as some sort of technique in dealing with debts. Some spouses actually declare bankruptcy but not at the same time, which is less obvious, if they decide to do this in order to escape from the debt trap.
Spouses or partners in a joint debt should keep in mind that while bankruptcy may seem to be a solution, it is actually a problem. Therefore, they should never attempt to make this as their getaway vehicle whenever the debt collector is trying to catch up on them. People with bankruptcy would never be able to enjoy a lot of privileges from the banks and other financial institutions. This is because they are often considered to be unworthy of trust. They would never be able convince the banks to provide them fresh loans.
Partners in a joint debt should do everything to complete the payment for it. This is not just the best way of resolving debt; this is the only way. If they declare bankruptcy, they may free themselves from the debt but they also put themselves in a position where they would no longer be able to take advantage of financial benefits and privileges that banks and other financial institutions provide. Bankruptcy is not an escape hatch; it is a trapdoor to a financial abyss.
What would happen to joint debts, especially those made by spouses? Would they be the gone too? If both spouses actually declare bankruptcy, then what would happen is basically the same as when an individual puts himself in the same situation. The debt could no longer be collected by the creditor. In other words, both spouses are absolutely freed from debt. However, it is impossible for both to declare bankruptcy as one entity. Each one of them may declare so but not as a couple. This may be the problem here. If only one of the spouses declares bankruptcy, he or she would be the only one that is unloaded of the burden of paying for the joint debt.
The spouse or the partner in the joint debt that does not declare bankruptcy would naturally have to cover the payment for the joint debt. Of course, this would be a huge burden on his and her part, considering that the value of the debt may still be big despite the minor or initial payments that may have been made before. However, it is also possible that couples may actually do this as some sort of technique in dealing with debts. Some spouses actually declare bankruptcy but not at the same time, which is less obvious, if they decide to do this in order to escape from the debt trap.
Spouses or partners in a joint debt should keep in mind that while bankruptcy may seem to be a solution, it is actually a problem. Therefore, they should never attempt to make this as their getaway vehicle whenever the debt collector is trying to catch up on them. People with bankruptcy would never be able to enjoy a lot of privileges from the banks and other financial institutions. This is because they are often considered to be unworthy of trust. They would never be able convince the banks to provide them fresh loans.
Partners in a joint debt should do everything to complete the payment for it. This is not just the best way of resolving debt; this is the only way. If they declare bankruptcy, they may free themselves from the debt but they also put themselves in a position where they would no longer be able to take advantage of financial benefits and privileges that banks and other financial institutions provide. Bankruptcy is not an escape hatch; it is a trapdoor to a financial abyss.
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