Does bankruptcy after separation overrule debts that a separation agreements protects against?
January 16th, 2006 by Questions
I co-signed a demand loan of 20,000 which was the revolving line of credit at my (now) ex-husband’s law firm. We separated and two years later he declared bankruptcy .I assumed his debt of 17,000 in a second mortgage. In the separation agreement it states that he would “indemnify and save harmless” the ex- wife (me) in regard to this debt for allowing the line of credit to remain on the house for a period of time. Does bankruptcy overrule the separation agreement statement of protection?
Thank you very much for helping me.
One Response to “Does bankruptcy after separation overrule debts that a separation agreements protects against?”
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January 17, 2006 at 10:33 am, A licensed trustee said:
From a legal standpoint, by filing bankruptcy your ex has obsolved himself of the responsibility to repay the debt. That being said, should he reneg on your separation agreement you have the right to return to Family Court and have the matter reviewed. In our experience, most spouses will recognize their moral obligation to deal with the debt (rather than return to Family Court).
If you are still on speaking terms with your ex you might want to discuss your concerns. Alternatively, it may be time to go and see the lawyer that assisted you in the first place to discuss options.