Sheridan, MI Bankruptcy Law Firms & Lawyers

Yes, you have to include all debts in you bankruptcy. You would also want to list it incase they sell the debt to a collection agency who could then pursue it.

First item, usually co-debtors (that's what you're called in bankruptcy court) usually have their debts paid 100% in Chapter 13 (unless the Chapter 13 payments are tiny). If your parents lawyer didn't inform them of this option, you have a malpractice lawsuit against the lawyer and your parents should file a ethics complaint because he/she has no business taking bankruptcy cases if he/she isn't familiar which basic bankruptcy law. Second item, are your parents still in Chapter 13? Creditors aren't allowed to sue co-debtors while the Chapter 13 is still going on (they take 3 to 5 years). Third item, If you received the summons on February 17th and a default judgment order a week later then the default judgment order will be overturned when you inform the court of these facts and ask to have the judgment cancelled.

You will not only have to pay the debt, but it will effect your credit score. Try to settle the debt prior to trial. Get the settlement agreement in writing.