QUESTION
What will happen if my husband files for bankruptcy?
Asked on May 08th, 2013 on Bankruptcy - Florida
More details to this question:
My husband and I have been separated since 2008. He keeps pressuring me to file for divorce all of a sudden so he can file for bankruptcy and couldn't figure out why until now. We had purchased a car together in 2006 that he took in the separation and never made payments on and the car got repossessed. If he files then and is cleared, all responsibility will fall on me is that correct? If so what do I do to fix this since he had the car and I have all the kids and responsibility?
12 ANSWERS
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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You really need to schedule a free consultation to discuss this situation in depth.
Answered on May 16th, 2013 at 5:11 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Your husband can file bankruptcy even if you are not divorced. Unfortunately, if you co-signed you will be responsible for the debt.
Answered on May 14th, 2013 at 6:29 AM
If you are the cosigner on the car debt, you are responsible for the debt. You can file your own bankruptcy (or join your husband's case), or ask that the divorce decree order him to pay the debt in lieu of higher alimony or child support.
Answered on May 09th, 2013 at 2:15 PM
Nothing unless you are a cosigner on any of these debt.
Answered on May 09th, 2013 at 2:15 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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You fix it by consulting with your divorce attorney otherwise file your own bankruptcy assuming that your signature is on the loan.
Answered on May 09th, 2013 at 2:14 PM
If you were a co-signer on that auto loan and the vehicle is repossessed, the lender will sell the vehicle and if it sells for less than what was owed on the loan, there will be a deficiency balance your husband can walk away from if he files bankruptcy. Yes, you will remain liable for that balance (as well as any other joint debts you may have with him). Just because he had the car does not relieve you of that responsibility. I suggest that you meet with an experienced bankruptcy attorney like myself so you can determine whether you should file bankruptcy as well.
Answered on May 09th, 2013 at 2:13 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Get an attorney and file for the divorce and in it seek to have the debt for the car assigned to him. Then, even if he bankrupts he will have to "hold you harmless" the damages you may incur.
Answered on May 09th, 2013 at 2:13 PM
Deborah F. Bowinski
If the car loan was in both your names then the lender will come to you for payment. If you have other debts as well it makes sense for you to schedule a consultation with a bankruptcy lawyer to determine whether that is an option for you as well. If the loan was in his name only then it should not affect you.
Answered on May 09th, 2013 at 2:13 PM
Your husband may file bankruptcy with or without your consent, and any debts you have jointly may let the creditor come to you to collect. Be sure that if and when you file for divorce or a legal separation that your attorney understands bankruptcy laws so that any orders from the family court will be protected from a discharge in bankruptcy.
Answered on May 09th, 2013 at 2:12 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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You are correct in that if he files bankruptcy, you will be the sole person on the debt that the creditor can go after. If you are still married, go into the bankruptcy together and wipe the slate clean for both of you. Get a divorce immediately after the bankruptcy. Idaho is a community property state and if he entered new debts after the bankruptcy, you could potentially be on the hook for them as well. Of course, there is always the alternative you could pay off the deficiency on the car but I would venture there are other surprises out there for you.
Answered on May 09th, 2013 at 2:12 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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It is important that you speak with both a divorce lawyer and bankruptcy lawyer. The reason is precisely because of what you are talking about. It is correct that if you do nothing, you'd be responsible on the car. However, you can try to protect yourself both in the divorce and bankruptcy on the debts. You need to talk to the attorneys to try to have the divorce court hold him responsible on the car. Also, a bankruptcy might help, because it would eliminate your responsibility on the car as well. We offer free consultations on bankruptcy issues. It is important that we review your whole financial picture.
Answered on May 09th, 2013 at 2:12 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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It's unclear to me what you mean by you purchased a car together. If you are both on the title, that means nothing. If you signed a promise to pay (note) then you are both liable and both are responsible to pay the debt. If he discharges his personal responsibility on the debt, then that leaves you.
Answered on May 09th, 2013 at 2:11 PM