Can my husband be held responsible for a joint debt he had with his ex-wife after she filed bankruptcy?

When you sign for a joint account, both parties are liable for the full amount of the debt to the lender. A divorce decree ordering each former spouse to pay 1/2 the debt, doesn't change either's liability to the lender; it just allows a spouse that pays more than half the right to charge the deadbeat spouse with contempt of court in the domestic case (and get reimbursed). The former wife's bankruptcy discharge eliminates her liability to the lender, making the former husband responsible for the whole amount. There is an issue whether the discharge eliminates the former wife's responsibility to reimburse her former husband for any payments over 1/2 that he has to make to the lender. If the divorce decree states that the former wife's obligation is "support" then she's still liable to him and he can still go to domestic court to enforce his rights. But if the divorce decree treats the former wife's obligation to him as part of the property settlement, her obligation is eliminated and he's stuck. That complex enough for you? So you need to interpret the divorce decree in light of the bankruptcy law, if we're talking about significant money; he needs to consult a bankruptcy attorney.

Creditors are not obligated to look to the terms of anyone's divorce paperwork to determine their legal rights. A creditor can look to either party for payment of a joint debt, and if one party is no longer responsible for the debt due to bankruptcy, the other party becomes responsible. Technically, the debt might be collectible through the divorce decree from the ex as a reimbursement, but if the wrong choice is made in trying to collect, you could be charged with violating the bankruptcy discharge.

Yes, it is legal. Both parties are jointly liable on the debt. Your husband may want to contact his divorce lawyer to discuss options through the divorce court. Good luck!

If there is a joint debt and only one liable party files bankruptcy, only the filing party's liability on the joint debt is discharged (be mindful that some debts are or can be deemed nondischargeable). In other words, the non-filing party will be liable for the entire joint debt after the filing party receives a bankruptcy discharge. Your husband may have some recourse under the applicable judgment of divorce. He should consult with an attorney to see what rights he may have in pursuing his ex-spouse. Since the ex-spouse received a bankruptcy discharge, any attempt to collect from her should be done with extreme caution as it could be violation of the discharge injunction.

When parties divorce, it does not change the contract. Both husband and wife were liable on the debt. The creditor does not care if the parties divorced and can go after one or both of the parties on the debt. The bankruptcy discharge for the ex-spouse removed the option for the creditor to go after the ex-spouse so the only option is now your husband. This happens all the time. Depending on the bankruptcy, you may be able to hold the ex-wife in contempt for failure to pay the debts under the divorce decree. Visit with an attorney to make sure. But the debt must either be paid or discharged in order to not have it report on his credit.

Based only on the facts you presented, it appears likely that your husband is still liable for the debt unless he can assert a defense such as a statute of limitations. That depends on applicable state law, and only an attorney with all the relevant facts of his case can give him reliable legal advice.

First, I strongly suggest you retain an experienced lawyer to assist through this transaction. That said, if your husband was not part of the bankruptcy with his ex, and if he was liable on the debt because of the divorce judgment, then a creditor could conceivably try to collect from him. Remember that the divorce court has jurisdiction only over the divorcing couple NOT over the creditors. However, a debt assigned in a divorce to a person who later files bankruptcy is NOT discharged if it is for domestic support, as most of them are. But there are fine distinctions to be made between debts. Also, the ex has a somewhat broader discharge if she filed Chapter 13 than if she filed Chapter 7. It is the general view among bankruptcy lawyers that if a debtor files under Ch. 13, their obligation to pay the spouses debts (or to make property division payments to the ex-spouse), then the debt assigned by the divorce court to that spouse is discharged. (It is not discharged in a Ch. 7.) I personally believe that the general view is mistaken, and a good argument can be made that such debts are not discharged in Ch. 13 either. But to argue that point takes a lot of lawyer time which also means lots of legal fees and the outcome is far from certain. I hope this helps. Good Luck.

First, the debt is a joint debt. Therefore, the creditor can look to either party for collection of it. Second, the divorce settlement/agreement is a contract between the two parties - I doubt the credit card company was a party to the agreement. Therefore, the creditor is not bound by the agreement for each to pay half. Third, if the ex-spouse filed Chapter 13, her agreement to pay half was also discharged so husband can't seek recovery from ex-wife for amount he has to pay. If ex-spouse filed Chapter 7, then husband could sue ex-spouse for money he has to pay that she was obligated to pay under contract. Finally, if the credit agreement is some 8 years old without activity, then husband may have a statute of limitations defense to collection and grounds to sue the creditor for the attempted collection.