If you are going through a divorce or are about to, the financial impact on each person may be insurmountable. A divorce impacts bankruptcy filings with the division of marital property and the division of marital debt. When contemplating bankruptcy after divorce, you should consult an attorney to determine how the divorce impacts your assets.
What happens if my ex files for bankruptcy after the divorce?
If your former husband or wife declares bankruptcy during or after your divorce, the creditors have the right to collect the unpaid debt from you and in some cases they may decide to try and collect from you. Regardless of what the court ordered in your divorce or what you agreed to a creditor will likely demand payment from you on those loans or debts your name is on, if and when it becomes clear they won't collect from the other person. Unfortunately, your divorce settlement doesn't change the obligations you have to your creditors. In many cases you will have no option but to pay the debt off on your own or declare bankruptcy yourself. In some cases you may be able to recover the monies you are now forced to pay off by filing a civil lawsuit against your former spouse.
Is all the debt mine?
In Florida as you have experienced all assets or property acquired over the course of a marriage are equitably divided during the divorce, such as retirement funds, home equity, bank accounts, and other assets. While the Court may have split these debts between the husband and wife, you are both still liable to the creditors who gave you the credit.
Is it my debt?
Regardless of whether or not you actually ever used the credit card, if your name is on the loan, credit card account, or mortgage, the creditors can hold you responsible for the debt. It is important if you are considering filing for bankruptcy to meet with an attorney who understands the bankruptcy laws and can determine for you if you are eligible to file for Chapter 7 liquidation or Chapter 13 reorganization.
How does bankruptcy effect child custody and alimony obligations?
It doesn't. Just because you or your ex-spouse has filed for bankruptcy the obligation to pay child support or spousal support (alimony) will not go away. If you cannot afford to pay these obligations, you will need to file paperwork in the Circuit Court to have your final judgment modified and these amounts adjusted. At Lapina & DuBois our attorneys are familiar with this process and will represent you or defend you when you find yourself in this situation.
The law office of Lapina & DuBois will work with you to help provide you with the best resolution for your bankruptcy needs. Call 407-482-4533 today for a free consultation offices in Orlando and Kissimmee.
