Just Ask Jude

A joint petition is when a husband and wife file together.

There are many things that can happen. You will need to determine if the creditors will be able to seek payment for the debt from the spouse who is not filing. Do you have debts that are joint? If one spouse files bankruptcy on a joint debt, that does not release the other party from the debt.

No. Even when you get divorced, if you have accounts that were joint...the creditor can come after you for the debt.

Yes. When you co-sign for someone you are taking on the debt as your own. If the co-debtor files for bankruptcy, the creditor can come after the co-signer for the full amount as well as late fees and penalties.

In many instances this is true. If you have joint debts it is probably better if you both file together and get a new financial start. This is the only way to make sure the debt isn't just transferred solely to the other spouse.The required debtors classes can help you get a better understanding of how to handle your finances properly. However, if you do not have any joint debts and one spouse has really good credit with minimal debt, then this spouse may choose not to file bankrtupcy.

One other factor to consider before deciding whether both spouses should file or not is your property. Colorado is an equitable distribution state.

No. One spouse can file bankruptcy while the other does not.

Colorado is not a community property state. Community property states divide the property in a marriage 50/50.

Equitable distribution is the division of property when a marriag is ending...however, it may not be "equal". Community property states divide exactly 50/50...equitable distribution does not. Here are some factors that are used in consideration of equitable distribution:

Duration of the marriage
Age and relative health of the spouses
Earning power of the spouses (one might be much greater than the other)
Separate property of the spouses (one might be greater in value than the other)
One spouse having done all the work to acquire the property
The value that one spouse contributed as the home-maker for the family
Economic fault of one spouse in wasting and dissipating marital property
The responsibility for providing for children of the marriage
Spousal abuse or marital infidelity (to penalize the offending spouse).

The answer to this boils down to whether or not you have joint debts.

The co-signer will still be 100% liable for the debt you discharge in a bankruptcy.