Bankruptcy Joint Debts

Does my debt go away?

What Happens to Joint Debts If I Become Bankrupt?

A joint debt is a liability that is owed by more than one person and each person is jointly liable for the debt. Typically, joint debts pertain to two people. In this situation, if one of the borrowers becomes bankrupt, that borrower is no longer liable for the debt and the remaining non-bankrupt borrower remains responsible for the total debt.
Whilst a bankrupt person is no longer responsible for a joint debt, the bankrupt person may continue making loan repayments on the joint debt to assist the remaining joint borrower where that person is a family member or spouse. A bankrupt person has no obligation to do this but is legally able to contribute towards the loan repayments from wages if he or she chooses to do so.

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Further Reading: We recommend our article Types of Debt Covered by Bankruptcy

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