Joint Debts & Assets

If you have ever faced problems with debt, you know just how inviting all of the relief options can be. There are numerous options for getting out of debt, each with their own benefits and risks. When it comes to debt relief, not all results are created equal. Some debt relief results may not be effective for resolving certain debts or could put you at threat of debt collections. Fortunately, the bankruptcy process can be a one option with more benefits than risks depending on your financial situation. One of the main advantages of bankruptcy is the immediate halt to collections and foreclosure during the debt resolution process.

Joint Debts

Jointly held debts are debts in which someone other than yourself is also liable for the debt repayment. This is common among married individuals and adults supporting a dependent. The most common jointly held debt is a mortgage. Rarely is only one member of a married couple the sole debtor on a mortgage loan. Other common joint possessed debts are auto loans, credit cards, and some lines of credit. There’s nothing innately wrong with concertedly possessed debts, but problems can arise when one member of the couple seeks bankruptcy protection on their own.
In cases where one member of a couple lines for divorce, jointly held debts can come the sole liability of the non-filing member in the eyes of creditors. This means while one member is protected by bankruptcy, the other is now open for collections. In these cases, the non-filing member may be subject to collection by the creditor. Whether divorce or simply unyoking the fiscal burden between couple members, it’s recommended that anyone filing for bankruptcy on their own consult with a Dallas bankruptcy lawyer for proper guidance.

Joint Assets

Assets that are jointly held are things like income, property, fund accounts, etc. These assets typically involve more than one member who claims legal possession. However, the creditors and bankruptcy court may be suitable to stake claim to the asset if a couple has jointly held assets and one member of a couple files for bankruptcy. The property may still be fairly eligible to come part of the bankruptcy estate and used to satisfy debt scores if a mortgage loan is listed in the name of both parties.