How Bankruptcy And Divorce Issues Are Handled
Divorce can be an overwhelming process, especially if there are many debts and financial liabilities that must be settled. Filing bankruptcy before a divorce may make the divorce less stressful.
A knowledgeable Stratford bankruptcy and divorce attorney at Ambrogio, Pletter & Associates, LLC, can provide you with your options.
It is best to discuss your situation with a bankruptcy lawyer before you file divorce. Call 203-502-7436 or contact our law firm online. Serving clients in Stratford, Bridgeport and the surrounding areas, we can assist with asset valuation, division of marital debt and other matters.
Ex-Spouses Filing For Divorce
In many situations, a divorce may have been finalized and now an ex-spouse is filing bankruptcy. The nonfiling spouse often comes to our office wondering what the impact will be, if any, on his or her life. Our Stratford law firm can review the situation and help you understand how this may affect your life. In some cases, there is no impact. In others, the impact is great. Each case is different and we approach each situation on an individual basis.
Hold Harmless Agreements
Most divorce agreements contain a “hold harmless agreement.” This agreement details which spouse is responsible for which debts. However, when debts are in both spouses’ names, creditors are not bound by the hold harmless agreement. This means that creditors can go after either spouse for the balance on the debt in order to collect their money. However, filing bankruptcy protection before you file divorce can settle some of the debts so that this does not happen.
It is also important to note that a hold harmless agreement in a divorce can make credit card debt nondischargeable for the person in bankruptcy, as it is viewed as a type of support by the courts.
Our firm can not only help with bankruptcy before the divorce, but can also advise in cases when a hold harmless agreement was created, but creditors are still pursuing one or both spouses for payment on the debts.