Are you concerned about what will happen if your ex-spouse files for bankruptcy? Is your debt divided up in a family order divorce order? If so, there are some things you need to know.
Sometimes, spouses split up the community property debt in family law. However, creditors can go after the other ex-spouse. This can happen despite the court order splitting up the debt. Creditors do not care about family law orders!
Unsecured Debt
An example of unsecured debt is credit card debt. Does your spouse have a legal obligation to pay on your unsecured debt? If so, the family court created an obligation between the two of you. This does not include the third party creditor (credit card creditor). Meaning, if your ex-spouse does not continue making payments, the creditor will be able to come after you regardless of the family court’s obligation.
So, if your family law court order was for support, you will need to go back to family court for a remedy. This will either result in your ex-spouse needing to pay additional support to you, which cannot be discharged through their bankruptcy. If the family court order was for something else, like an equalization payment and your ex filed for Chapter 13, you will need to file a proof of claim in the case.
What Can You Do?
Even if the debt is discharged in your ex spouse’s bankruptcy, a creditor may still be able to go after the ex-spouse that did not declare bankruptcy. Speak with a qualified bankruptcy attorney to discuss your current situation. You will get a better idea of what options will work best for your situation. In fact, a qualified bankruptcy attorney can help you negotiate with creditors or even help you file your own bankruptcy case.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like you to get to know us. We want you to be sure you are the right fit for us. We also want to be sure that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.