My spouse and I are thinking about a divorce but need to file bankruptcy. How are divorce and bankruptcy related?
Since under California's
governing divorce laws all debts incurred during
marriage are equally the responsibility of both the husband
and the wife, it is common that in the divorce proceeding
they may reach an agreement that spells out who will pay
which debts and in what amounts. Trouble brews when after
they have finalized the Judgment of Dissolution (Divorce),
one spouse files bankruptcy and the creditor(s) can no
longer proceed against the spouse who filed bankruptcy.
What's a creditor to do? Go after the other (non-filing)
spouse for all the debt. The agreement in the divorce case
does not bind the creditors: it only affects the
relationship between the two spouses. These situations are
messy, and the non-filing spouse may need legal help in
forcing the other spouse to make good on the agreement
entered as a Judgment in Family Court. Click for more
information about divorce and family law issues.
