Legal Question in Bankruptcy in Nevada
I am a guarantor on a debt for my husband's sole proprietorship. If he files bankruptcy, am I still liable for this debt?
Thanks.
2 Answers from Attorneys
Unfortunately yes. There are some procedures that the creditor would have to do prior to the bankruptcy but once he files, you are responsible. If he files a Chapter 13 reorganization, you would be protected from collection so long as he is in the bankruptcy.
If you have any other questions, please email me.
Although technically you are still responsible for this debt, with the delay involved in collection due to your Husband's filing a Bankruptcy, the creditor may move the collection file into the "uncollectable" category. If that were to happen, you might be able to permanently avoid the consequences of this debt
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