What You Can Do If Creditors Come After You When Your Ex Files For Bankruptcy
If your ex-spouse files for bankruptcy, there is a chance you may suddenly have creditors coming after you. This typically happens only when a couple leaves debts in joint accounts after they divorce, and it will occur shortly after your ex-spouse files for bankruptcy. Here are several things you should know if this happens to you.
Why this happens
Creditors have the right to try to collect debts from anyone listed on a debt, and this is why divorce attorneys try to split up marital debts into separate accounts during divorces. Unfortunately, there are times when this cannot or does not happen. When this occurs, it leaves one spouse in a bad position, because he or she must rely on the other spouse paying the debt.
This situation can not only occur when couples have joint accounts, but it can also occur if you are an authorized user on a credit card account. Even though you may not have applied for the account, if your name is listed as an authorized user, you will probably be responsible for the debt.
Once your ex files for bankruptcy, the creditors on these joint accounts will no longer have the right to go after your ex, and this is why they will come after you for the money owed.
The options you have to solve the problem
If you are stuck in this situation, you have two main choices; however, there might be a third option. The third option is only applicable if your divorce decree contains indemnification clauses. An indemnification clause for a joint debt will allow you to take your ex to court to ask him or her to pay for the debt. This type of clause does not stop creditors from coming after you for joint debts, but it does offer some recourse for you to go after your ex to settle the debt.
The other two options you have are to pay the debts owed or to file bankruptcy yourself. If you have excellent credit and the debts are relatively small, paying them yourself might be the better option. On the other hand, if the debts are very large, you might want to consider using bankruptcy to help you free yourself from the obligations of these debts.
If you would like to find out how bankruptcy could help your situation, make a consultation appointment with a bankruptcy attorney, such as Harold Jarnicki Attorney At Law, today. You can also contact your divorce attorney for help.
