Divorce and Bankruptcy

A divorce can be financially devastating. Often before the divorce, the financial strength of a marriage is weak. Fighting over finances is a major reason for divorce.

First, if you are still married, it is much cheaper for a couple to file for bankruptcy together than to each file separately. It is important to discuss this with your attorney since if your financial settlement is within 6 months of your bankruptcy discharge, the Trustee can come after property if it would not be exempt as a single filing.

The divorce decree does not stop bill collectors from collecting the debt from you, even if your spouse was ordered to pay it. It is also possible that your spouse will file bankruptcy and that you will have to pay the debt. Seriously consider whether you or your spouse will file bankruptcy and what guarantees your spouse will pay. For instance, if he or she cannot afford the house, it may be best for you to either force the sale of house or to take the house (and the debt for it), rather than trust your spouse to pay for it. It is common for a spouse to file bankruptcy and sit in the house until foreclosure. The mortgage company will then attempt to collect from you. A situation like this could destroy your credit.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  • Blog Stats

    • 2,169 hits
%d bloggers like this: