When people decide to end a marriage through divorce they are often hoping to cut all ties with their ex-spouse. In many areas this is easily done but not in debt.

When a married couple acrues debt jointly it will show up on both of their credit reports and the responsibility of the debt is on both of them. During divorce proceedings assets are divided between both parties. If joint debt remains when a divorce is final both parties will be responsible for that debt.

In the event that one party decides to file for chapter 7 bankruptcy it would be up to the court to decide if the non-filing ex-spouse is responsible for any of the debt or not. If they are, then they would still have to pay their portion of the debt after the filing spouse has been discharged.

If an ex-spouse that you share debt with decides to file bankruptcy it is best to discuss your role with a bankruptcy attorney. They can help you understand exactly how the situation will effect you.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

First comes love, then comes marriage, then for some comes…bankruptcy and divorce? Or should it be divorce and bankruptcy? Unfortunately, for many couples, debt and divorce go hand in hand. If you feel that your marriage is headed for divorce because of significant financial obligations, you may be wondering if it makes sense to file bankruptcy before or after your divorce.

Ask yourself a few simple questions:

• Is your divorce amicable? Are you able to part ways with your former spouse on good terms and are you confident that they are not hiding assets?
• Are you tired of constant calls and letters from debt collectors?
• Are your spouse and you in agreement about filing bankruptcy?

If you answered yes to the above questions, it most likely makes sense for you to file for bankruptcy with your spouse prior to filing for divorce. It will be less expensive that filing for Chapter 7 orChapter 13 individually, and most likely it will simplify your divorce proceedings and settlement. Additionally, the automatic stay that is provided by Chapter 7 and Chapter 13 will help alleviate some of the stress caused by collection calls and letters as you sort through your finances and dissolve your marriage.

To find out more about bankruptcy and divorce and what the right choice is for you, read this article about Bankruptcy and Divorce and contact Chang & Carlin for more information about Chapter 7 and Chapter 13.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.