Now that you are divorced what happens if your ex decides to file for bankruptcy? Are you responsible for the debts that they owe? When a divorce is finalized there is normally an agreement that details the assets and debts that the couple owe, both individually and jointly.
This agreement should determine who owes what debts, and who is entitled to what assets and property. In some situations you could become the target of creditors, even if your divorce agreement clearly identifies your ex as the responsible party.
If the divorce agreement orders the individual to pay the debt will they be held in contempt if they file for bankruptcy? This is possible, but in most cases the only remedy the court will recommend is to sue the ex spouse for any financial resources that have been used to satisfy the debt in question. Will the court force your ex to pay you the amount of the debt if the creditors come after you? Yes, this is usually one possibility.
Can you file for bankruptcy protection yourself? This depends on many different factors, but usually this is one option and can eliminate the debts owed once and for all. If your divorce spells out the intended outcome then you can consult with the attorney who handled this matter for you, to see if it is possible to hold the individual in contempt and force them to pay off the debt ordered.
This type of case can end in many different ways. This will depend on which state you reside in, the exact contents of the divorce decree and property settlement, and a number of other relevant facts. An attorney may also recommend that you file for bankruptcy to protect you from any creditor actions at the same time.
If a debt is determined to be jointly owed then the creditors may come after you, even though the divorce decree shows that your ex is responsible to pay off these debts amounts. If the other party files for bankruptcy then you may be the only person left to try and recover from. The creditors may care less what the divorce decree says, if they think they can recover from you they will try.
Filing for bankruptcy can help in this situation in several ways. The automatic stay will go into effect, preventing the creditors from contacting you or trying to collect until the bankruptcy court can review your petition and sort out your finances. This step should be taken in addition to petitioning the court to hold your ex in contempt of the divorce decree.
A qualified bankruptcy specialist should be used to prepare your case and represent you in bankruptcy court. Make sure that this professional has experience and extensive knowledge of the current bankruptcy laws and codes. If you have a legal obligation to pay a debt because it is attached to your name as well as that of your ex then the creditors will contact you, especially once the other party files for bankruptcy.
The bankruptcy lawyer that you choose will go over all of your finances, income, debt, assets, and other important factors in your case. This professional can offer advice on exemptions , the different chapters to file under, and other areas of the bankruptcy process. The attorney will also normally complete the required forms needed for the court, and represent you in court. They will handle everything once you have provided any needed documentation and verifications.