Concerned about that notice in the mail that your ex-spouse filed bankruptcy? Before you panic, read the rest of this article to find out what happens if your ex-spouse files bankruptcy.
More than once I’ve gotten calls from people in a panic because they just found out their ex-husband or ex-wife filed bankruptcy. They want to know what it means for them.
In Colorado, how your ex-spouse’s bankruptcy will affect you depends on whether or not any of the debts he is including are joint debts. Like they sound, joint debts are debts both of you took on and are both legally responsible for. Car loans and mortgages are common joint debts, but credit cards, medical bills, and apartment leases can also be joint debts.
Once your ex-spouse files bankruptcy, creditors for joint debts have to stop any collection activity but only as far as he is concerned. They can still go after you for those debts. If they file a lawsuit and get judgment, they can garnish your paycheck and bank account.
Your separation agreement should have included a provision regarding your debts. Sometimes an agreement requires one spouse to pay another’s debts. If it does and your ex-spouse is filing Chapter 7 bankruptcy, you could still force him to pay the debts he’s getting rid of. You’ll have to go back to family court to ask the judge to force him to pay you for those debts. You should talk to your divorce attorney about how to do that. If he files Chapter 13, then you may not have any recourse. Again, talk to your divorce attorney.
If you find out your ex-spouse has filed bankruptcy, the first thing to think about is whether or not any you were responsible for any of those debts. Take a look at your separation agreement to see what it says about your debts. If you are jointly responsible for any of the debts you incurred before you divorced, those creditors are likely going to contact you. You might be able to negotiate repayment terms with them but if you don’t, they’ll likely pursue collection action. If you find out these debts are too much for you to take on, you might also have to consider bankruptcy.
Talk To An Experienced Bankruptcy Lawyer About Your Ex-Spouse Filing Bankruptcy
If you have questions about what happens if your ex-spouse files bankruptcy, we hope you’ll come in for a free, no-obligation consultation with an experienced Denver, Colorado bankruptcy lawyer to talk about whether this is something you need to be concerned about. You can make an appointment using our online scheduling system or by calling 303.331.3403 to set up a time that’s convenient for you.
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