Divorce and Bankruptcy

[kcs93]

My husband has told me he wants a divorce. With his income and mine (which is about 1/3 of his) we are just barely making it month to month. I'm guessing that we probably would not qualify for bankruptcy at this point. However, once he moves out and has to pay for an apartment or whatever, there's going to be no money for anything but house and utilities, basically. Throw in a divorce and making it "otticial" and my income will be pretty crummy.

My question- I read that it is better to file bankruptcy before divorce because you can file jointly - which you should do because if one person files after divorce, credit card companies can still go after the other person. So, how does it work if we wouldn't qualify now, but would qualify after divorce? I think he is going to be against filing, but I would hate to file after divorce and have him be the one to get hounded by credit card companies.

Thanks for any help. His announcement was a complete surprise to me, so I am still reeling from trying to process that situation. All I can think about is taking care of myself and our 2 kids and it seems to me that bankruptcy is imminent and I don't know where to start or where to turn.

[ButterflyT]

Wow so sorry to hear that.

I don't really know anything about bankruptcy but divorce...well that one I have learned of late. I can tell you that per my divorce attorney you are correct on the debt thing. I was on the other side...my ex husband was the deadbeat..I made the money..paid all the bills, he worked maybe a year in our 8 year relationship....and still managed to feel justified to cheat but whatever... per my attorney debt collectors are not required to honor a divorce decree...they can go after whomever the debt is named in, which in my case, everything was in my name. SO what my attorney decided was to award ALL the debt to me and then include a judgement against him that he had to pay me a lump sum amount. Of course he didn't want the divorce or to pay so the judge finally granted me the judgement almost 2 years later, but I would recommend something like that in order to protect the credit of whomever's name the debt is in. It is unlikely they will pay but then you cna always go back to court and they will be in contempt of court for not paying.

And on a personal note, so sorry for your situation. I was in shock when I found out about my ex cheating..I was completely blindsided. Even though I am the one who chose divorce, I felt like I had no choice.....so I understand how you feel. Time...time really does heal all wounds!

Take care of yourself and your kids!

Also, you are in the right place. There are alot of wonderful people on this site with alot of knowlege!

[kcs93]

Thanks so much for the sharing of experience and, even more, for the kind and encouraging words.

There are a couple of debts in both names, a few that I think are just in my name and probably a couple of small ones just in his name. I admit that I am to blame for much of the debt (I was off work for about 6-7 yrs staying home with the kids), but he is not totally innocent. Plus, it's not like I bought myself expensive luxury items- it was all kids or house stuff, even gas or groceries when times were tight.

 I am coming torealize that bankruptcy will be my only way out and to accept what that entails. However, believe it or not, I don't want him to get totally screwed with debt collectors or whatever. I think that he will be resistant to filing, but, the whole divorce thing isn't my idea, so what can ya say? Would a credit report show exactly what names are on what accounts?

[ButterflyT]

Hmmm that is a good question as far as the joint accounts names on a credit report. I honestly have never had a joint account with anyone so I don't know.....

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@kcs93 wrote:

Thanks so much for the sharing of experience and, even more, for the kind and encouraging words.

There are a couple of debts in both names, a few that I think are just in my name and probably a couple of small ones just in his name. I admit that I am to blame for much of the debt (I was off work for about 6-7 yrs staying home with the kids), but he is not totally innocent. Plus, it's not like I bought myself expensive luxury items- it was all kids or house stuff, even gas or groceries when times were tight.

 I am coming torealize that bankruptcy will be my only way out and to accept what that entails. However, believe it or not, I don't want him to get totally screwed with debt collectors or whatever. I think that he will be resistant to filing, but, the whole divorce thing isn't my idea, so what can ya say? Would a credit report show exactly what names are on what accounts?

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[guiness56]

Yes, pull all three credit reports from annualcreditreport.com.  One free every 12 months from each CRA.

Do you live in a community property state?

There are pros and cons to filing bankruptcy while still married.  Mostly pros IMO.

For a Chap 7 you have to meet the income requirements to file.