Ex-Wife Claims Bankrupcy
April 15th, 2010 by Questions
My Ex-Wife claimed Bankruptcy after our divorce agreement was final. She had agreed to be responsible and have my name removed from a line of credit. When she claimed Bankruptcy, this line of credit was left off and the responsibility has fallen on me… is this normal for that to happen, or was it an oversight by her trustee and should have been responsible for it?
Posted from: Manitoba
One Response to “Ex-Wife Claims Bankrupcy”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
April 16, 2010 at 9:21 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This is normal. What happens is that the divorce settlement has now legal authority with the bank. So when one partner agrees to take on the debt as part of the divorce, this changes nothing in the eyes of the bank and the both of you are still jointly and severally liable for the debt. Typically the bank won’t remove the other party as then they would be in a more risky position. So what happens when one spouse files for bankruptcy, the other spouse is still responsible for the balance of the debt, irrespective of what the divorce agreement says.