What happens then?....

[Needing Help]

If I file and complete a chapter 13 (not 100%)... how much time do the creditors have to go after my wife for the remaining debt once the 13 is discharged (on the debts that she is current on)?

Have any of you delt with this before? Do the companies actually do that after 5 years?

[kornellred]

My understanding is - when the Court declares your debt to be discharged, then the debt no longer exists. No entity can demand payment for a debt that does not exist.

In Chapter 7, debts are discharged immediately, after all conditions are fulfilled. In Chapter 13, any remaining debts are discharged after completion of the repayment plan.

Ex-creditors may still hound you, but the Court discharge papers are all you need to "show 'em the door".

Some BK's are exceedingly complex and there are loopholes that some creditors can exploit. But if the Court declares the debt to be discharged, then that's the end of it.

Correct me if I am wrong, please.

Willie R.

[LadynRed]

The question here is, what state are you in ???

If you're in a community property state, then, as long as you're married, they can NEVER go after your wife, the discharge protects her as much as you in a CP state.

If you're in a non-CP state, and your wife is joint on the accounts that are discharged, they could go after her at any time since she is equally liable for the debts.

[Needing Help]

Hi LadyNRed... We are in AZ, which I believe IS a community property state.

Using your info... what if we are seperated (not divorced), but reconsile after the 13 in a NON-community state. Does it default to the state in which I filed?

Or... what if we DID end up divorced, but say it was 15 years later. Is there a statue of limitations on the debt?