If you and your ex-spouse took on joint debts during your marriage, you may both be legally responsible for them even after divorce. These debts can range from credit card debt to home equity loans. But what happens if your ex-spouse files for bankruptcy?
You may be responsible for the total amount of the joint debt
When your ex-spouse files for bankruptcy, an automatic stay starts right away. This court order gives immediate relief from debt collection pressures, and creditors must stop all attempts to collect debts, including phone calls, letters, and legal actions.
While it does not affect your ex-spouse’s domestic support obligations like child support or spousal maintenance, creditors can still demand full payment from you once the bankruptcy discharges your ex-spouse’s responsibility.
What actions can you take?
If your ex-spouse files for bankruptcy after your divorce, here are some steps you can take to protect your assets:
- Keep an eye on your credit report to make sure your ex-spouse’s bankruptcy doesn’t hurt your credit score. Dispute any mistakes with the credit bureaus.
- File a proof of claim if your ex-spouse owes you support payments, like spousal or child support.
- Explain the situation to creditors and explore options for managing any joint debts.
- Consider refinancing any joint debts into your name alone to avoid future complications.
If you end up paying a joint debt that your ex-spouse was supposed to pay according to your divorce decree, you can seek reimbursement through family court by filing a motion for contempt or enforcement of the divorce decree.
Your financial well-being is important
Navigating life after divorce is difficult, especially if debt from that marriage continues to affect you. You have the power to take control of your financial future.
