Your ex-spouse’s bankruptcy filing may lead creditors to you

| Jun 17, 2019 | Firm News |

Your divorce was something you did not expect to take so long and result in such pain and stress. Now that time has passed, you do not wish to revisit much about it, especially the deals with your ex.

A mutual friend expressed concern over the fact that your ex filed for bankruptcy. While you do not believe this is your concern, think again. Depending on the debts included in the filing, you may wind up on the hook for some or all debt your former spouse took in the divorce.

Joint debts

During the divorce, you separated assets, property and debt. You took your equitable share of the assets and bills, and your ex did the same. Some of the debts included in the marital pot were co-owned. As such, both names were on the accounts. If your ex took a debt that had your name on it at one time or another and declared bankruptcy, there is a good chance the creditor will come for you. Depending on the amount of the debt and the type – loans for example – you may have to plan on taking it if you want to keep collections at bay.

Payments owed to you

If your ex owes you money in the form of spousal maintenance or child support, the court may recalculate it as part of the bankruptcy process. The court may make this a temporary fix or a permanent solution to help the former spouse recover from bankruptcy. Unfortunately, you have little to no say in this decision.

Your credit report

Your ex’s credit will suffer because of the filing, but what about yours? While bankruptcy should not show up on your credit report, it is possible it does. This is not something that should occur, so contact the credit bureaus to correct the error.

Bankruptcy under any chapter can hurt someone for many years. While your ex filed, not you, it is possible you still feel the effects. Speak to your attorney for guidance during this type of situation.