06 Jul 2016

Staying Afloat: Navigating Joint Debtor Cases with New BK Forms

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Navigating the new bankruptcy forms—which are much more voluminous and include many changes to the old forms, can make you feel like you’re in over your head at times. Luckily BMS is here to help guide you through the changes and keep you afloat!

In this article, we’ll discuss how the new forms handle joint debtor cases and information a little differently, and best practices for liquidated assets in these cases.

Learn more below!

Differences in New Forms

Some of the changes on the new forms for  joint debtor cases include:

  • Debtors are called “Debtor 1” and “Debtor 2” instead of “Debtor” and “Co-debtor.”
  • You can only see the ownership on real estate and vehicles in the new schedules, whereas before, you could view ownership for each property listed on Schedule B.

Quick Tip: Liquidated Assets in Joint Debtor Cases

As a quick tip, liquidated assets owned by only one of the joint debtors can only be used to pay the claims for debts of that one debtor. Any claims for debts related to an asset not owned by that joint co-debtor should be objected to or withdrawn.

For example, if Debtor 1 owns Vehicle X, which is the only asset of the estate, and Debtor 2 only has a credit card to their name, any claim on the credit card should not be paid from the liquidation of Vehicle X.