Filing for bankruptcy can be a bit intrusive. You will have to disclose a lot of financial information and possibly some personal information as well. Most people understand that bankruptcy is a public process. There will a case number, there will be a petition, there will documents that will need to be filed with the court, and there will be a public meeting with the bankruptcy trustee. Additionally, your name may appear in the local paper. But for the most part, bankruptcy filings are not well advertised. Most people in your private world will not know that you have ever filed bankruptcy.
The co-debtor needs to be notified of the bankruptcy filing because once you receive your bankruptcy discharge you are no longer liable on that joint debt, but the co-debtor will remain liable. The co-debtor needs to know that if this debt remains unpaid or payments are no longer being made to this creditor the co-debtor is still responsible for the debt. The co-debtor alone will deal with the risks of the unpaid debt. This includes being sued, garnished, or levied.
One caveat to discharging joint debt: If you agreed to pay the joint debt in the divorce decree, your ex-spouse can still hold you liable on those debts.
While it may not be ideal that your ex is aware of your bankruptcy filing, it is unavoidable if you have joint debt with this individual. Contact the attorneys at Kain and Scott and see us at www.kainscott.com. You will be glad you did!