Sticky Situation

[faith45763]

What is the name of your state (only U.S. law)? MI
My mother in law recently filed bankruptcy for her business. My husband had a debt in her name that she was including in her filing. She was told by her attorney that he should stop paying this debt because he has paid more than the principle and should be dismissed in court. We are now a week away from her court date. They recently had an argument and she is not speaking to him until she told him today that this debt is not being "taken care of" in her bankruptcy. Is is possible to get a decision about this debt prior to a court date? I probably wouldn't question this from anyone else but she is a very vindictive person and enjoys it when others are in the same misery as her. Oh and the fact that my husband just won $5,000 which completely drives her insane. Thank you to anyone that can help with this situation.

 

[bigun]

She is required to list all of her creditors.
Register for a pacer account and see if the debt is scheduled.

PACER Service Center Home Page

Actually, if the debt was in her name, your husband has no legal responbility to pay it-bankruptcy or not.

 

[faith45763]

thank you! one more question, if she did list it in her bankruptcy, is there any way she would know what the creditors agreed on before the court date?
thanks again

 

[bigun]

Creditors don't get to that those sort of decisions.
If it's a no asset Chapter 7, unsecured creditors get zero. If there are assets to be liquidated then, priority claims like taxes and legal fees get paid first, secured creditors are paid second and unsecured get the leftovers.

 

[faith45763]

Thank you again. I appreciate your information.