Will Debt Prevent You From Moving On After Divorce?

It is very common for a couple to experience bankruptcy and divorce, either simultaneously or within a short period. When these two legal actions intersect, the consequences may affect both parties.

To learn how bankruptcy may affect you if you are divorced or soon to be divorced, speak with an attorney at Prescott Pearson & Tande, PA With thousands of former clients and more than three decades of experience, our attorneys have handled numerous bankruptcy cases that involved discharging debts and divorce.

You May Still Owe Marital Debts After the Divorce Is Final

In some cases, the divorce decree holds one spouse harmless for joint debts. However, the divorce decree does not have any force of law with third-party creditors, which means they can pursue repayment from that spouse.

Divorce is handled in family court, and family court does not have jurisdiction over bankruptcy matters. It cannot discharge any debt obligations. Only the bankruptcy court can change a contract between a creditor and debtor. Family court changes the relationship of the spouses, but not their relationship with the third-party creditors.

Sometimes, people will take action against their former spouse if they violate the divorce decree by not paying their portion of the debts. This may eventually send the violating party to jail, but it will not eliminate the other spouse's obligations to repay the debt. Filing bankruptcy may be a way to eliminate your obligation to marital debt.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.