Bankruptcy by either party following a divorce may still have an impact on the other spouse.
Since this information is for educational purposes only, be sure to speak with a licensed professional for specific legal advice.
If your spouse files for bankruptcy after the divorce, his or her liability to the credit card company will be discharged. This means that if you were jointly liable on a credit card, you are now the only one on the hook.
However, if a debt was assigned to your spouse in your divorce and he or she agreed to (or was ordered to) hold you harmless for that debt, his or her liability towards you is not discharged in bankruptcy.
Thus, if your spouse doesn’t pay the debt and you suffer damages, you may have grounds to sue him or her, even if the credit card company cannot.
Since divorce is almost always about dividing assets and debts, many variables may come into play. An example of this might be credit card debt that has been primarily accrued due to one spouse’s gambling habit. In such cases, a court may not consider that debt marital and may mandate that the responsible party pay the debt in full.
By utilizing the free, web-based debt settlement software available at settleitsoft.com, you may be able to settle your credit card debt for less than you imagined, while hopefully eliminating a contentious issue. You may be able to resolve this financial matter much quicker than you imagine; allowing that part of your divorce proceeding to become moot.
More information about Divorce and Credit Card Debt as well as other financial tips may be viewed in this Blog or the Knowledge Base of SettleiTsoft.com.