What Are Some Common Reasons A Divorce Can Put A Couple Into A Position Of Bankruptcy?
Many times when people are struggling financially, that may lead to stress in a relationship. You may have a partner who’s not working and the other person gets resentful because they are earning all the money. Many times that can lead to a situation where people want to separate or get divorced. In reality, it’s kind of a chicken-and-egg thing.
Another aspect when you get divorced is that you have two households and the same amount of income. This means you have to support twice as much overhead with the same amount of income. Before, you may have had two people paying the mortgage on one house. Now you have one person paying the mortgage and one person paying rent somewhere else. So, divorce will cause the expenses to increase and unfortunately, the income doesn’t increase so that can force people to fall behind the other bills and end up in bankruptcy.
If After A Divorce, Your Ex Files For Bankruptcy And Their Portion Of Joint Debt Is Discharged, How Can That Affect Any Shared Debt?
When you have a joint debt, the creditor doesn’t really care who pays it or who they get the money from. It’s called Joint and Several Liability. If you owe $10,000 and one of you files bankruptcy, the creditor can collect the entire $10,000 from the other spouse. In case of a joint debt, just because one person files bankruptcy doesn’t mean the other person only has to pay half or a portion of it. They can be forced to pay the entire amount.
If a debt is not joint, then when you get divorced, it just becomes a matter of the debt belonging to the spouse who owns it and then it remains their problem.
If you have More Questions About Bankruptcy And Divorce Cases, call the law office of Attorney James Logan for a free initial consultation at (855) 4MD-BANK and get the information and legal answers you’re seeking.