Confusion When Collecting from Divorced Couples

A couple going through a divorce must divide their debts as well as their assets. Each spouse takes responsibility for paying off a portion of the marital debt, such as a: Mortgage; Credit card balance; Personal loan; or Medical bill. Divorcees may mistakenly believe that they are not liable for the debts that their former spouse assumed. As a creditor, you are not bound by the terms of a divorce agreement and have the right to pursue repayment of the debt from either spouse after the divorce. Loan Contract vs. Divorce Agreement You can give a clear explanation to a debtor who argues that the debt belongs to his or her former spouse: Dividing debts during divorce is a personal agreement about who should be responsible for paying a debt; but The loan agreement is unchanged and has the names of both former spouses, making each of them legally liable for the debt. Removing their name from a title or deed does not absolve them of a debt associated with that property. They…

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