PLEASE NOTE: Our Office remains open during this coronavirus pandemic. Additionally, because of our deep concern for the safety of our clients and staff we now offer FREE VIDEO or TELEPHONE consultations for people so they can understand their financial options from the comfort of their own home.
Brand
Mobile Brand

Call now for a FREE consultation!

Family-Owned Bankruptcy Law Firm

Filing Bankruptcy on Joint Debts after a Divorce

Blog

Filing Bankruptcy on Joint Debts after a Divorce

We often meet with clients that are dealing with collection actions or lawsuits for debts that their ex-spouse was supposed to pay in accordance with their divorce agreement. If you find yourself in this situation, it is a good idea to visit a bankruptcy attorney in order to explore your options. At O'Bryan Law Offices, you can schedule a free consultation with one of our experienced bankruptcy attorneys today. While bankruptcy may be the most efficient and cost-effective option of addressing these debts, it is also important to realize that you have legal rights against your ex-spouse for his or her failure to pay the debts assigned to him or her in the divorce agreement. Often, your ex-spouse may be held in contempt of court in family court because of his or her failure to comply with the agreement. This path can be costly and time-consuming, and depending on your ex-spouse’s financial situation, may not be helpful.

We often meet with clients that are dealing with collection actions or lawsuits for debts that their ex-spouse was supposed to pay in accordance with their divorce agreement. If you find yourself in this situation, it is a good idea to visit a bankruptcy attorney in order to explore your options. At O'Bryan Law Offices, you can schedule a free consultation with one of our experienced bankruptcy attorneys today.

While bankruptcy may be the most efficient and cost-effective option of addressing these debts, it is also important to realize that you have legal rights against your ex-spouse for his or her failure to pay the debts assigned to him or her in the divorce agreement. Often, your ex-spouse may be held in contempt of court in family court because of his or her failure to comply with the agreement. This path can be costly and time-consuming, and depending on your ex-spouse’s financial situation, may not be helpful.

It is common for individuals to think that a creditor should not be able to collect against them for a joint debt if their ex-spouse was the one responsible for the debt per the divorce agreement. Unfortunately, the creditors were not parties to that agreement and still have a legal right to collect the joint debt from you or your ex-spouse.

If the joint debt is dischargeable in bankruptcy, you may be able to file a bankruptcy and discharge your liability as to the joint debt, leaving your ex-spouse as the only remaining liable party. Accordingly, if your ex-spouse filed a bankruptcy case and discharges his or her liability, you are the only one left liable and it may be in your best interest to file a bankruptcy case then as well.

If you are going or have gone through a divorce proceeding, you know that it can be a difficult and complicated situation. Make an appointment today to meet with one of the experienced bankruptcy attorneys at O'Bryan Law Offices in order to discuss how a bankruptcy can help reduce the stress during an inevitable stressful time.

Call us today at 502-400-4020 to make an appointment for a free consultation. We look forward to working with you.