It has been said the number one cause of marital struggle and ultimately divorce is money. So, it goes without saying that divorce and bankruptcy often times go hand in hand. Because gaining solid financial footing after a divorce is key to helping you move forward in your life, it is essential to understand how bankruptcy can impact support obligations and division of debt as ordered by the divorce court.
Child support is not an obligation that will be wiped out by bankruptcy. Other debt though is a different story. When you get divorced the Court will make an equitable division of property and a fair apportionment of debt. The problem that occurs when your spouse is ordered to pay joint debt and then file bankruptcy is that you are the one left responsible for the debt. In bankruptcy it works like this:
● Elimination of debt is only for the person that files the bankruptcy. This means if your spouse was ordered to pay for a credit card that you are also on and then files bankruptcy, the lender will look to the non-filing person for repayment.
● This is also true for secured debt obligations, such as vehicle and home loans.
The remedy in this situation is to seek a contempt citation against your ex in the divorce case itself. You can also object to the terms of the bankruptcy depending on the chapter filed, or initiate a lawsuit within the bankruptcy case to resolve the issue. These cases can be difficult and may depend on the specific language in your divorce decree. In order to make a decision on how to best proceed; seek the advice of a skilled family law attorney. We will review your case and help you to make an educated decision that works for you and fits the facts of your case.
For answers to your questions about divorce and bankruptcy, consult our office. Let us put our experience to work for you. Call The Sampair Group in Phoenix and the West Valley today to schedule your appointment.