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If my soon to be ex files bankruptcy?
Antioch, IL
Viewed 69 times.
Posted 3 months ago in Bankruptcy / Debt
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Someone recently warned me that if my soon to be ex files bankruptcy, that the creditors will come after me. I was a stay at home mom, so my name is only on the house and 1 of the credit cards. Can creditors still come after me if my name wasn't on the account? I was recently told (by a relative) that they can because it is martial debt. I am not sure if it matters, but I live in Illinois. Thanks in advance.
Answers (2)Stacy Teegardin Beutler
This attorney is licensed in Illinois.
Posted 3 months ago.
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Yes, here in Illinois it is possible for the creditors to pursue you for your soon to be ex's debt; however, the creditors will rarely do this. Both spouses are always liable for "family expenses" if purchased with that card. Family expenses include the expected: food, clothing, shelter, medical, furniture, etc. The reason that creditors rarely pursue spouses is that the law imposes a strict penalty against creditors that improperly pursue a spouse for non-family expenses.
One note: have you checked your credit report? Your soon to be ex's debt may appear there (other than the house and 1 card). If it does, please contact myself or another lawyer. Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. Do NOT rely on anything I have written here -- You should contact a lawyer in your area immediately after reading my posting. The following disclosure is required pursuant to IRS Circular 230: unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. Henry Repay
This attorney is licensed in Illinois.
Posted 3 months ago.
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To the extent you are responsible, for example, on a joint credit card, the creditor can and likely will come after you. The terms of your divorce do not limit the right of the creditor, only the obligations as between you as former spouses. If a creditor collects from you concerning obligations your former spouse was ordered to pay, your recourse will be to seek recovery from him in the family court case. The spouse's responsibility to you under the terms of the divorce should fall under an exception to discharge in bankruptcy.
Debts on which you do not have direct responsibility may nonetheless fall to you under the Family Responsibility Statute, provided they were for necessary family expenses. It is less likely, however, that the creditors will pursue these debts. To the extent they do, you should review how this was addressed in your divorce. If you are experiencing financial difficulties because of these matters and especially if you have other obligations aside from these debts, you should consider whether your filing of a bankruptcy may be the best course. As part of your review, you should consider how likely you will be to succeed in collecting from your former spouse and how much time and expense it will cost you. If you were satisfied with the services of your attorney in the divorce, I suggest you return to that attorney to consult about these questions. The scope of this space does not afford the opportunity for dialogue which is necessary for an attorney to properly consider the circumstances and advise you. |