[chink]

I found that my husband is planning to file bankruptcy after he signs divorce papers. What affect will this have on the contents of the divorce agreement?

[wnk_1001]

It most likely will not have any effect on the contents of the divorce agreement. If his bankruptcy is successful, most of his debts will be discharged. As long as none of the debts are also in your name, everything should be fine. If any of the debts are in your name, sometimes the creditor can come after the joint applicant and try to collect the funds. However, if you have a court order stating he is responsible, you shouldn't have any problems with the creditors after he files.

[Fr_Chuck]

Well you will have some issues, if they promised to pay certain joint bills.
For example if there was a large credit card bill for 10,000 lets say, and the divorce degree said they were to pay it, once they file bankruptcy, the credit card company can no longer go after them, so they will go after you, They can get a judgement against you ( the divorce agreement does not stop debt collection) and even garnish your pay.
Then you can hire an attorney and take the other person back to court to see if the judge will find them in contempt for not paying the bill as agree.

So if your divorce had a lot of debts the other person was to pay, yes it will mess you up fairly badly.

[George_1950]

You need more information: is this a Chapter 7 or 13? If Ch 7, you need to know what debts, if any, he is going to reaffirm (pay). If Ch 13, you need to know the percentage of unsecured debts he is going to pay. Also, the statements of income and expenses may yield some useful information. Your attorney can help you get a copy of the filing.

[JudyKayTee]

Well you will have some issues, if they promised to pay certain joint bills.
For example if there was a large credit card bill for 10,000 lets say, and the divorce degree said they were to pay it, once they file bankruptcy, the credit card company can no longer go after them, so they will go after you, They can get a judgement against you ( the divorce agreement does not stop debt collection) and even garnish your pay.
Then you can hire an attorney and take the other person back to court to see if the judge will find them in contempt for not paying the bill as agree.

So if your divorce had alot of debts the other person was to pay, yes it will mess you up fairly badly.

Absolutely - if your X is adjudicated bankrupt and there are joint debts the creditors have no one to pursue but you.

I don't know if this rises to a contempt finding - in fact, it happens fairly frequently and becomes an issue if the X receives something in consideration for paying the bills and then defaults. The "something" becomes the problem.

For example, the X receives the marital home in exchange for paying the credit card debts - and then files in Bankruptcy.

[lawanwadee]

For debts that are in both names, the collectors will come to you and in most cases, demand 100% payment... this is risky situation.
Get an attorney ASAP.

[George_1950]

Again, there are differences, depending on what he has done or attempted to do. For instance, if he filed Ch 13, then you will have the benefit of the 'co-debtor stay' that protects you from creditor claims as long as he is paying the debt within the case on time. This is definitely a complication for your post-divorce financial matters, so you need your attorney's assistance; I hope you have one.

[JudyKayTee]

It most likely will not have any effect on the contents of the divorce agreement. If his bankruptcy is successful, most of his debts will be discharged. As long as none of the debts are also in your name, everything should be fine. If any of the debts are in your name, sometimes the creditor can come after the joint applicant and try to collect the funds. However, if you have a court order stating he is responsible, you shouldn’t have any problems with the creditors after he files.

Sorry but a Court Order cannot change the terms of a credit agreement. They are both responsible unless the creditor agrees.

[wnk_1001]

Sorry but a Court Order cannot change the terms of a credit agreement. They are both responsible unless the creditor agrees.

My husband is divorced, and during his divorce him and his X were ordered to pay certain joint accounts independently from each other. His X filed bankruptcy after the divorce, and signed into agreements with each of the creditors during her bankruptcy, holding my husband harmless. Why did she do that, well, because she was court ordered to do so. I don’t think she would have done it just to be nice.

The creditors can come after the joint applicant. So I do not see the major misinformation here. Furthermore she did not even say the debts were jointly held, therefore, if her spouse enters into agreement with the creditors, she would not be responsible for the debt, period.

Should she have any questions, yes, she should contact her attorney immediately.

[JudyKayTee]

My husband is divorced, and during his divorce him and his X were ordered to pay certain joint accounts independently from each other. His X filed bankruptcy after the divorce, and signed into agreements with each of the creditors during her bankruptcy, holding my husband harmless. Why did she do that, well, because she was court ordered to do so. I don’t think she would have done it just to be nice.

The creditors can come after the joint applicant. So I do not see the major misinformation here. Furthermore she did not even say the debts were jointly held, therefore, if her spouse enters into agreement with the creditors, she would not be responsible for the debt, period.

Should she have any questions, yes, she should contact her attorney immediately.

I don't understand your criticism of my earlier advice. If other than Bankruptcy Court (and I thought the OP was talking about a Matrimonial Court Order) issues the order stating who will pay what a filing in Bankruptcy does not change the terms of the contractors with the creditors.

You are talking about an Order that Bankruptcy Court issues - I would presume - ordering the ex to enter into hold harmless agreements. If Bankruptcy Court had taken no acton or some other action he would be held responsible. I have no idea why this was the order from Bankruptcy Court and, quite frankly, I'm more than a little surprised that Bankruptcy Court did this and the creditors agreed.

And I did address what was jointly held. The OP and I would have no interest in what is not in her name - individually or jointly.

[Hearts2013]

I don't understand this when every time I have talked to a bankruptcy attorney or the creditor they tell me that my ex can file and be clear but that the creditor can still come after me EVEN though per the divorce decree he is responsible.

[JudyKayTee]

The divorce decree orders your husband to pay YOUR or MUTUAL debts (yours and his) but does not change the terms of your agreement with the creditor(s). You would have to pay the debt(s) and then sue your husband for the money. Of course, if he files in bankruptcy the debts are all yours.

Is your attorney aware that he plans to file?

No divorce court/family court can change the terms of your loan/credit/mortgage agreements nor can that Court force him not to file in Bankruptcy.

If he files you either file, too, or you pay everything in your JOINT and your INDIVIDUAL names. That's the purpose of a co-signer or joint signer. If all else fails the creditor can collect from you.