Legal Question in Bankruptcy in Michigan

in michigan if two people have their names on a utility bill and 1 person delcares bankupcty , can the utility company go after the other person for the debt or is it wiped clear for both

Asked on 4/01/13, 6:06 am

1 Answer from Attorneys

Thomas R. Morris Silverman & Morris, P.L.L.C.
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If both persons agreed to be liable for the account, which is likely the case if both are named on the bill, the bankruptcy of one will not result in a discharge of the other (the "co-debtor").

However, if the debtor files a chapter 13 petition, the co-debtor stay will prevent collection from the co-debtor (at least temporarily) to give the bankruptcy debtor the opportunity to pay. The co-debtor can be pursured eventually if the debt is not paid in full.

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Answered on 4/01/13, 6:32 am

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