How much of my debt can I erase with bankruptcy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How much of my debt can I erase with bankruptcy?
My ex wife and I built a salon, which she ran and still does. She assumed responsibility for the debt in the divorce agreement and I got our credit card debt. I lost my job and I am currently struggling to make ends meet. She has ruined the business by running off employees and clientele. I know my name is on the salon mortgage and I share the burden of debt, but I need to know if filing bankruptcy will erase my credit card debt and my share of the salon loan.
Asked on August 11, 2010 under Bankruptcy Law, Oklahoma
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I would strongly suggest that you seek credit counseling in your area as soon as you can. Generally, there are two provisions of the bankruptcy code that you can file under: Chapter 7, which is a "liquidation" proceeding where non-exempt assets are turned over for liquidation to pay off debt and then the debt not paid off is "discharged" or wiped out; and Chapter 13, which is a "reorganization" of the debt to be paid off in three to five years. You seem to want to go the Chapter 7 route given the present situation with your finances. Yes, it is my understanding that the debt you list - in your name - will be erased against you when the bankruptcy is discharged. Seek help so you know what your options and exemptions are and you can make a solid decision on this matter. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.