(7th Cir. Dec. 22, 2016)
The Seventh Circuit affirms the district court’s judgment that the action against the debtor’s spouse did not violate the Chapter 13 co-debtor stay. The action against the spouse was based on a credit card account held only by the spouse. The debtor argued that, based on Wisconsin law, her assets were subject to the spouse’s credit card debt. The court holds that, while the automatic stay would prevent collection from property of the estate, the co-debtor stay did not prevent the action against the spouse because the debtor was not a “co-debtor” on that debt. Opinion below.
Attorneys for Debtor: Kerkman & Dunn, Briane F. Pagel, Jr., Gregory M. Schreiber
Attorneys for Appellee: Hunton & Williams, Jarrett Lee Hale, Gregory G. Hesse, Eric W. Flynn, Faegre Baker Daniels LLP, Jeffrey P. Justman, Jane E. Maschka, Aaron D. Van Oort